Coal gets costly for non-power core sectors

Coal may soon become dearer for the sponge-iron, steel and cement sectors. This is because these sectors have been asked to source at least 20 per cent of their needs from the open market.

“The energy coordination committee headed by Prime Minister Manmohan Singh had recommended that barring the power sector, existing coal linkage for other constituents of the core sector — steel, cement and sponge iron — be reduced to 80 per cent from the current 100 per cent, implying that producers in these sectors would now have to buy the deficit 20 per cent coal from the open market,” a coal ministry official said.

Business Standard