FAQ ABOUT S&M

Q1: What are the products of NEC

Ans. NEC Produces :

1. Non Coking Coal of following characteristics.

SL No.		PROXIMATE AND ULTIMATE ANALYSIS OF NEC COAL

1	G1		GCV: Exceeding 7500 and not exceeding 7600 Kcal/Kg

	PROXIMATE ANALYSIS				ULTIMATE ANALYSIS
	Moisture%		2.2 - 2.60		Carbon%	75.5 - 76.90
	Ash%		4.90	- 5.80	Hydrogen %	5.4 - 5.5
	Volatile Matter%		41.4	- 43.00	Nitrogen %	1.3 - 1.6
	Fixed Carbon%		48.20 - 50.00		Sulphur %	2.5 - 2.8
	Caking Index		19 - 24		Oxygen % (By difference)	13.2 - 15.4

2	G1	GCV: Exceeding 7300 and not exceeding 7400 Kcal/Kg

	PROXIMATE ANALYSIS		ULTIMATE ANALYSIS
	Moisture%	2.2 - 2.4	Carbon%	71.2 - 77.90
	Ash%	5.00 - 11.30	Hydrogen %	4.9 - 5.2
	Volatile Matter%	38.00 - 39.00	Nitrogen %	1.6 - 1.8
	Fixed Carbon%	48.30 - 53.80	Sulphur %	3.2 - 4.6
	Caking Index	18 - 22	Oxygen % (By difference)	10.5 - 19.0

3	G2	GCV: Exceeding 6700 and not exceeding 7000 Kcal/Kg

	PROXIMATE ANALYSIS		ULTIMATE ANALYSIS
	Moisture%	2.3 - 2.5	Carbon%	68.30 - 71.3
	Ash%	11.3 - 13.50	Hydrogen %	4.90 - 4.91
	Volatile Matter%	38.00 - 40.10	Nitrogen %	1.50 - 1.80
	Fixed Carbon%	43.90 - 48.40	Sulphur %	2.3 - 5.7
	Caking Index	17 - 20	Oxygen % (By difference)	16.3 - 23.0

4	G4	GCV: Exceeding 6100 and not exceeding 6400 Kcal/Kg

	PROXIMATE ANALYSIS		ULTIMATE ANALYSIS
	Moisture%	2.57 - 2.7	Carbon%	63.6 - 64.1
	Ash%	15.80 - 18.60	Hydrogen %	4.53 - 4.54
	Volatile Matter%	36.70 - 37.20	Nitrogen %	1.5 - 1.70
	Fixed Carbon%	41.60 - 42.30	Sulphur %	5.40 - 5.60
	Caking Index	16 - 19	Oxygen % (By difference)	24.00 - 25.00

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

	Nature of customer	Procedure of purchase of coal

	Power Utilities including	Supply of coal through legally enforceable Fuel
	Independent Power	Supply agreements (FSA). New consumer will have
	Producers (IPPs) and	to approach existing Standing Linkage
	Captive Power Plants (	Committee(LT) under Ministry of Coal for
	CPPs), cement and	recommendation for issue of Letter of
	sponge iron including	Assurances(LOA) by Coal companies as per
	Steel,	provision of NCDP (NEW COAL DISTRIBUTION
		POLICY) and recommendation of Administrative
		Ministry . LOA is issued on furnishing Commitment
		Guarantee(CG) followed by execution of FSA on
		fulfillment of LOA conditions in the stipulated period
		of time.
	Fertilizer	Coal will be supplied by coal companies through
		FSA.
	Defense	As per government order.
	Customers belonging to	Customers to get coal under FSA through Letter of
	sectors other than what	Assurance (LOA) route as per laid down procedure.

	has been mentioned
	above (requiring coal
	beyond 4200 MTPA)
	Customers having	Such consumers may buy coal from the state
	requirement of coal less	nominated agencies. Such nominated agencies get
	than and upto 4200	coal through FSA with the coal supplying
	MTPA	companies.
	Trader	Coal can be purchased only through Spot EAuction-
		Scheme

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.

Ans.

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).

Group	Volatile%	Gross C.V.in	Air dried Moisture%
	(on unit coal basis)	K.Cal/Kg	at 60% RH &
		(on unit Coal )	40®C(On
			Mineral Free coal
			Basis)
B4	over 32	8060 to 8440	3 to 7
B5	over 32	7500 to 8060	7 to 14