Draft letter to be sent by Subsidiary Coal Company to each unit which has been granted clearance by Standing Linkage Committee (Long Term) for issuance of Letter of Assurance (LOA).

On Company’s Letter Head Pad

Ref. No.                                                                                                        Date :

To

(Name, Regd. Address,Phone No., Fax No.,

E-Mail address of applicant for issuance of Letter of Assurance (LOA)

Sub : Issuance of Letter of Assurance (LOA) on implementation

of New Coal Distribution Policy approved by Govt. India.

Dear Sir,

In terms of the New Coal Distribution Policy (NCDP) issued by the Ministry of Coal with the approval of Govt. of India vide O.M. No.23011/4/2007/CPD dated 18.10.2007 it is hereby informed that for the purpose of issuance of Letter of Assurance (LOA) for supply of coal to your unit(s) you are required to furnish us  Commitment Guarantee (CG) either in cash or in the prescribed format of the Bank Guarantee. The amount of C.G. to be furnished by you would be equivalent to 10% of the notified base price of your annual coal requirement considering the highest grade of Coal applied for. Such CG, however, would not be less than or exceed the stipulated amount, details of which may be seen from the Model Letter of Assurance along with the format of B.G. available on CIL’s website www.coalindia.gov.in name of the subsidiary company website).

As would reveal from the copy of the Model LOA enclosed, you would be required to complete the stipulated milestones in a time bound manner in terms of the provisions of the Model LOA. Accordingly, you are requested to furnish stipulated CG at the earliest but not later than 3 (three) months from the date of issuance of this letter.

Other detailed terms & conditions would be as stipulated in the Model LOA enclosed.

Thanking you,

Encl : As stated

Yours faithfully,

General Manager (S&M)

(Name of the Subsidiary Coal Company)

Documents:-

A)Summary Companywise recommended Quantity for issue of Letter of Assuarance(LOA) as per decisions of SLC(LT) & MOC Letter No. 23011/52/2007-CPD dt.21.01.2008 for Thermal Power Projects(TPPs),Captive Power Plants(CPPs),Cement Plants and Sponge Iron Plants.

B)  Letter of Assurance  for Captive Power Plants (CPP)

C)  Letter of Assurance  for  IPPs & Pvt. GENCOs Unit

D)  Letter of Assurance  for State Owned Power Utilities

E) Letter of Assurance  for Cement  Plants

F) Letter of Assurance  for Sponge Iron  Units

G) LOA Format of Commitment Guarantee Cement & Sponge-iron

H) LOA Format of Commitment Guarantee Power Generation Entities

I) Fuel Supply Agreements for all consumers other than power ,but including  CPP

J) Fuel Supply Agreements for State Nominated Agencies

K) Fuel Supply Agreement for Power Sector

L) Model Agreement for Coking Coal Supply for Intregrated Steel Plants

M)Model Fuel Supply Agreement for New Private Power Utility thorugh LOA Route

N) Model Coal Supply Agreement for New SEB /State Genco through LOA route

O) Model Coal Supply Agreement for Private Power Generation Utility

P) Fuel Supply Agreement for non Power Coal Consumer including CPP -High Demand 

Q) Fuel Supply Agreement for non Power Coal Consumer Including CPP -Medium  Demand

R) Fuel Supply Agreement for non Power Coal Consumer  including CPP-Low  Demand