Mahanadi Coalfields Ltd (MCL) is the second-largest coal producing subsidiary of CIL. The company had decided to cut down coal supplies to the Non-power sector for the third successive month in Dec’17, in order to augment coal supply to the power stations.
According to the circular provided by the Marketing and Sales Department dated 29 Nov’17, the company has asked all Non-power consumers to lift 80% of their monthly scheduled quantity for Dec’17. The Non power consumers lifting coal through FSA, FSA through LOA route, and Linkage auctions, have been requested to apply for coal allocation accordingly.
It is the third time that MCL has asked Non power consumers to lift 80% of their monthly scheduled coal quantity, having earlier made such request in Oct’17 and Nov’17.
Suffering from the ongoing coal scarcity in the domestic market, Consumers’ have shifted their attention towards E-auction mode of coal procurement, which has witnessed aggressive buying among the participants.
The latest round of auction had seen prices falling on account of increased coal offer for sales. However, the need for restocking coal in thermal plants and fall in hydro power generation are expected to keep firm coal shortage for Non Power till Mar’17.
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