FAQ about S&M

Q1: What are the products of NEC
Ans. NEC Produces :

1.Non Coking Coal of following characteristics.

Q2: Which are the customer segments serviced by NEC
Ans. Customer segments serviced by CIL are as under

1. Power( Power utilities including IPPs).
2. Power(Captive).
3. Cement.
4. Paper Ind.
5. Central PSUs for consumption and use (as distinguished from trading).
6. Export..
7. State nominated agency.
8. Traders, etc..

Q3. What is FSA?
Ans. FSA stands for Fuel supply Agreement. As per new Coal Distribution Policy(NCDP) Coal supplies are governed by Legally enforceable agreements between the seller (coal companies) and the consumer under specific terms and conditions. Various model FSAs for different categories of consumer have been placed in the website.

Q4. What is LOA?
Ans. LOA stands for Letter of Assurances. It is issued to new consumers on being approved by the appropriate authority, based on recommendation of a committee constituted Specific terms & conditions of the LOA to be complied with within a stipulated time period for being eligible to enter into FSA for commencing coal supply.

Q5. How a customer will purchase coal
Ans. customers can be classified into 3 types. Types of customers vis a vis procedure to be followed for purchase of coal is as under

Q6. What are the benefits of E Auction
Ans.The benefits are briefly stated as under

Total transparency in coal marketing.
Equal treatment to all the categories of customers without any discrimination. Buyers getting coal of their choice in respect of source, grade, size/mode. Buyers can purchase coal from anywhere in the country.

New consumers, snapped consumers and consumers seeking additional coal over & above their FSA quantity could buy coal under this scheme.

Tendency of diverting coal to secondary market at a premium is greatly reduced, if not fully eliminated.

No quota/linkage/sponsorship needed for purchase of coal. Option for depositing money for registration/EMD on-line.

Q7. Where a customer will get E Auction Schedule
Ans. A customer can get E Auction schedule from respective WEBSITES of Coal Companies or portal of MSTC and mJunction.

Q8. I am small industrial consumer. I want to buy coal. For self consumption . How do I get coal
Ans. If requirement is less than 4200 tonne per annum, you can procure coal from agency nominated by your states at a price not exceeding 105% of base price at which coal was purchased by the agency from linked coal companies. Coal also can be procured from spot e auction with a minimum bidding quantity of 50 tonne.

Q9. How could I get coal for industrial requirement?
Ans. New Coal Distribution Policy(NCDP) of Gov’t of India specifies the policy for distribution of Coal. Depending upon the category of the consumer and requirement of Coal, the policy provides for appropriate procedure for obtaining Coal.

Q10. How much coal is distributed through e-auction?
Ans. 10% of annual production of CIL is marked for e-auction.

Q11. Who are eligible to participate in e-auction?
Ans. Any buyer can participate in spot e-auction and only actual consumer can participate in forward e-auction.

Q12. What is the procedure for participation in e-auction?
Ans. The procedure for participation in e-auction is specified in the scheme for spot e-auction and scheme for forward e-auction.

Q13. Who are your service provider for conducting e-auctions?
Ans. MSTC and mjunction. The web sites are www.mstcindia.com, and www.coaljunction.in respectively.

Q14. What are the mailing address of MSTC and mjunction.

MSTC Limited
225C AJC Bose Road Kolkata-700 020
Web site-www.mstcindia.com
Tel ph no-(033)2287-0568/7577/9627 Fax no-(033) 2290-4294/5637

mjunction Services Limited TATA Centre
43 Jawahar Lal Nehuru Road Kolkata-700 071
Web site:- www.coaljunction.in
Toll Free no-180041920001 Fax no-(033)66106297

Q15. What is UHV of Coal?
Ans. UHV stands for useful heat value of coal. which is calculated by the empirical formula as below:

UHV = 8900-138(ash%+Moisture%) in Kilo Calories/Kilogram.
In the case of coal having moisture less than 2 per cent and volatile content (VM)less than 19 per cent the useful heat value shall be the value arrived at as above reduced by 150 kilocalories per kilogram for each one percent reduction in volatile content(VM) below 19 percent and fraction pro-rata.

Q16. What is Long Flame Coal?
Ans. The Long Flame is a characteristic of coal which depends upon the volatile matter present in the coal. Range of Gross CV and dried moisture are two other factors which determine the long flame characteristics of coal. Following parameters are as laid down in IS 770-1964, general classification of coal(revised).

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