CIL’s Fourth Tranche of coal linkage auction is moving forward; next up it’s the captive power sector which would be addressed in the auction process.
After successfully conducting the auction for Sponge Iron and Cement sub-sector, Coal India Ltd (CIL) is all set to commence the auction process for the captive power plants (CPP). For the upcoming round of auction the coal company has offered 17,540,500 MT coal for sale to the CPP sector.
The auction process would be conducted on MSTC online bidding platform, commencing from 18 Sep’18 and would stretch to 10 Oct’18 on every working day in three different time slots.
The base price of coal offered in the auction is as per the price notified for the non-power sector. Coal from all the subsidiaries have been offered in the auction, with NCL contributing the highest quantity for the cause followed by MCL.
| Name of Subsidiary | Quantity Offered |
| NCL | 5,180,000 |
| MCL | 3,658,500 |
| SECL | 3,600,000 |
| CCL | 2,850,000 |
| WCL | 1,632,000 |
| BCCL | 350,000 |
| ECL | 270,000 |
| Total | 17,540,500 |
Quantity in MT
Need of Linkage for CPPs:
The continuous rise in power demand in the country compels CIL to increase its coal supply for the power sector; however, there remains a disparity in coal supplies to the various sections of power producers.
CIL have been accused of providing special treatment for coal supplies to the thermal power plants having power purchase agreements with distribution companies (Discoms), which are prioritised to avoid disruptions in electricity supplies to consumers and households.
Next in line for coal supplies are the Independent power producers (IPPs) which sell their electricity in open market, thereby helping the Discoms to balance the mismatch in demand and supply.
As far as the captive power plants are concerned, they are last in line among the recipient of coal, as they produce power only to run their secondary operations.
CPP sector thereby have booked the highest coal quantity in the previous linkage auctions, to secure long term fuel security.
Coal allocation by the CPPs have been falling over the course of the three tranches, however the sector accounts for 68% of the total quantity booked in the auctions. As per the data provided by ministry of coal, 45.18 MnT coal have been allocated in the three tranche of auction out of which 30.84 MnT was booked by the CPP sector.
Detailed schedule of the auction along with the source-wise offers are provided here.
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