The authorities on Saturday permitted providing of dry-fuel by coal corporations, together with state-owned CIL, via a standard e-auction window as an alternative of sector particular auctions. The approval was given throughout a gathering of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
In an announcement, the coal ministry mentioned CCEA has permitted “offering of all the non-linkage coal by coal companies through one e-auction window of CIL (CIL)/Singareni Collieries Company Ltd (SCCL).”
Due to the transfer, market distortions can be eliminated and single fee for all of the shoppers will evolve within the e-auction market. It will improve operational efficiencies and result in a rise in home coal demand.
Besides, the discretion presently vested in coal corporations for allocating coal to completely different finish use sectors can be eradicated. Further, the coal corporations will be capable of set up coal gasification crops by availing coal from their very own mines.
It shall assist in growing clear coal expertise within the nation, it added.
This e-auction will cater to all of the sectors, specifically energy sector and non regulated sector (NRS), together with merchants. Coal can be supplied via this public sale instead of the current system of sector particular auctions.
“The above 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,” it mentioned. WITH PTI
