CCEA approves auction of coal linkages for non-regulated sector

The Cabinet Committee on Economic Affairs (CCEA) has approved the allocation of linkages (or award of letters of assurance) for non-regulated sectors (including cement, steel/sponge iron and aluminium) through the auction route. The framework lays down that the tenure of a fuel supply agreement (FSA) would be decided by the Ministry of Coal from time to time; there would be no premature termination of FSAs and no renewal of existing FSAs (except FSAs of central public sector enterprises and fertiliser units) which are to mature from 2015-16 onwards, after completion of the currently agreed tenure; and separate quantities would be put on offer for subsectors of non-regulated sectors (including captive power plants in non-regulated sectors).