Procurement of Indigenous Coal by Tamil Nadu Electricity Board from the Public Sector Undertakings of Government of India and Import of Coal, Amendment to Notification

What the notification changes

G.O. Ms. No. 417, Finance (Salaries), dated 28 August 2009, was issued by the Government of Tamil Nadu Finance Department (Salaries) under clause (f) of Section 16 of the Tamil Nadu Transparency in Tenders Act, 1998. It amends Finance Department Notification No. 121, published in the Tamil Nadu Government Gazette Extraordinary on 28 April 2008.

The earlier wording covered:

• Procurement of indigenous coal by the Tamil Nadu Electricity Board from Government of India Public Sector Undertakings.
• Purchase at prices notified by the Government of India.
• Import of coal through the Minerals and Metals Trading Corporation at a negotiated price.
• The Tamil Nadu Electricity Board's right to purchase coal through competitive bidding under the Act.

Revised coal procurement routes

The amended wording continues to permit the Tamil Nadu Electricity Board to procure indigenous coal from Government of India Public Sector Undertakings at prices notified by the Government of India.

For imported coal, the revised notification permits:

• Import through Central Public Sector Undertakings that have been importing coal and supplying it to government owned power utilities.
• Purchase at a price negotiated with the relevant Central Public Sector Undertaking.
• Import through Tamil Nadu Newsprint and Papers Limited, where the coal has been procured through competitive bidding.
• Direct procurement of imported coal by the Tamil Nadu Electricity Board through competitive bidding under the Tamil Nadu Transparency in Tenders Act, 1998.

The replacement wording therefore removes the exclusive reference to import through the Minerals and Metals Trading Corporation and identifies other permitted procurement channels.

Who is affected

G.O. Ms. No. 417 directly concerns the Tamil Nadu Electricity Board, eligible Central Public Sector Undertakings, and Tamil Nadu Newsprint and Papers Limited in relation to coal procurement and import arrangements. It also matters to businesses participating in competitive bidding for imported coal.

The notification contains no provisions about land ownership, property registration, planning permission, land use, acquisition, patta or building approval. A property buyer or landowner is therefore not directly affected by its stated provisions.

Effective date

G.O. Ms. No. 417 states that the amendment came into force on 28 August 2009.