Cabinet approves offering of coal via common e-auction window

The central government has approved offering of all the non-linkage coalby coal companies, including Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL), through a common e-auction window instead of sector specific auctions.

This e-auction will cater to all the sectors namely power sector and non-regulated sector including traders. This will be subject to CIL/SCCL meeting the coal linkage requirements against existing linkages and do not impact the current linkages to power and non-power consumers at contracted prices. Coal offered through the single e-auction window will be transport mode agnostic with default option being through rail mode. However, coal may be lifted by the consumers through the road mode/other modes depending upon their choice and suitability without paying any additional charges or discount to the coal companies. Long term allotment of coal by CIL/SCCL, without affecting the supplies against existing coal linkages, to their own gasification plants will be allowed at prices as may be decided by the coal company. However, the taxes, duties, royalty etc will be paid by the coal companies on the notified prices of coal for power sector. With this move, market distortions would be removed and single rate for all the consumers will evolve in the e-auction market.

 

GET ACCESS TO OUR ARTICLES

Enter your email address

Share your work e-mail and access a free 3 month digital subscription to Power Line Magazine