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CIL Planning to Strengthen Coal Supply to MSMEs

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State-run Coal India on Monday said it is trying to clear procedural hurdles affecting coal supplies to micro, small and medium enterprises (MSMEs).

Source: ET

SNP Insight

The supply of coal to the MSMEs from CIL is not the problem but the inefficiency in distribution of coal by the state-owned nominated agencies have choked the coal supply process. If CIL can put a procedure where the SMEs of a state can have a consortium and apply for FSA with CIL directly. And the state-owned nominated agency only distribute the coal to different industries as per their agreement. This may lessen the power of the state nominated agency for supply of coal and may bring transparency on coal supply front to the MSMEs.

Source: SNP Infra Research