**Policy Summary: Review of Coal Distribution Policy for MSMEs**
This document summarizes the Indian Ministry of Coal's response to Lok Sabha Unstarred Question No. 620, addressed on July 23, 2025, regarding a review of the coal distribution policy. The question inquired whether the government proposes to review and amend the existing coal distribution policy to ensure coal supply to small and medium industrial units, particularly in light of coal block reallocations.
The Minister of Coal and Mines, Shri G. Kishan Reddy, stated that there is currently no proposal under consideration to review or amend the coal distribution policy for small and medium industrial units. The existing New Coal Distribution Policy (NCDP), dated October 18, 2007, and subsequent amendments on July 26, 2013, September 4, 2013, September 27, 2016, and April 11, 2022, already addresses the coal allocation to Micro, Small, and Medium Enterprises (MSMEs).
Specifically, MSMEs with annual coal requirements of less than 10,000 tons are supplied through State Nominated Agencies (SNAs) designated by the respective State Governments. Furthermore, MSMEs can also access coal through Single Window Mode Agnostic e-auctions and Non-Regulated Sector Linkage Auctions conducted by coal companies, contingent upon meeting the stipulated eligibility criteria for these auctions.
Key Entities Referenced
Shri Azad Kirti Jha: Member of Parliament who raised the question regarding review of coal distribution policy.
Minister of COAL AND MINES SHRI G. KISHAN REDDY: The Minister of Coal and Mines who provided the answer to the question.
Micro, Small Medium Enterprises (MSMEs): Small and medium industrial units that are the subject of the coal distribution policy.
New Coal Distribution Policy (NCDP): The existing coal distribution policy, originally dated 18.10.2007, and subsequently amended, that governs coal allocation to MSMEs.
State Nominated Agencies (SNAs): Agencies notified by the State Governments through which MSMEs with coal requirements less than 10,000 tons per annum are distributed coal.
Single Window Mode Agnostic eauctions: One of the methods through which MSME units are eligible to obtain coal.
NonRegulated Sector Linkage Auctions: Another method through which MSME units are eligible to obtain coal.
GOVERNMENT OF INDIA
MINISTRY OF COAL
LOK SABHA
UNSTARRED QUESTION NO. 620
TO BE ANSWERED ON 23.07.2025
Review of Coal Distribution Policy
†620. Shri Azad Kirti Jha:
Will the Minister of COAL be pleased to state:
(a) whether the Government proposes to review and amend the coal distribution policy to
ensure supply of coal to small and medium industrial units in view of re-allocation of coal
blocks;
(b) if so, the details thereof; and
(c) if not, the reasons therefor?
ANSWER
MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a), (b) & (c): Allocation of coal to Micro, Small & Medium Enterprises (MSMEs) are made
as per New Coal Distribution Policy (NCDP) dated 18.10.2007, followed by amendments dated
26.07.2013, 04.09.2013, 27.09.2016 and 11.04.2022, where the MSMEs whose requirement is
less than 10,000 tons per annum are distributed coal through the State Nominated Agencies
(SNAs) notified by the State Governments. Besides, the MSME units are also eligible to obtain
coal through the Single Window Mode Agnostic e-auctions and the Non-Regulated Sector
Linkage Auctions conducted by the coal companies, subject to meeting the eligibility
criteria. At present, no proposal is under consideration to review and amend the extant coal
distribution policy for supply of coal to small and medium industrial units.
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