On 30 Mar’16, CIL will start a special forward coal e-auction for power plants that is scheduled to complete within 2 days.
CIL, a largest domestic coal producer, will schedule a special 2 days coal auction for power plants on 30 and 31 Mar’16. The government has put 3 MnT of coal in this auction for those troubled power plants, which have neither linkages nor power purchase agreements yet. In addition, through this auction, the government has planned to ensure maximum affordable electricity to all.
The government said that phase IV forward auction terms and conditions will be followed in the coming phases. In this forward auction reserve price for power sector will remain at 10% over the notified price of coal for the sector. Meanwhile this will be applicable for G6 (5501-5800 GCV) and below grades.
Earlier the Coal Ministry had informed that Coal India had already put about 14 MnT coal under special e-auction to both power and non-power sectors.
The auctions were conducted on 30 Sep’15 (Phase I), 1 Oct’15 (Phase II) and 18 Feb’16 (Phase III). CIL has also supplied 385.61 MnT thermal coal to power sector instead a target of 405 MnT in FY15.
In FY16, the company has supplied about 337 MnT coal (during April-January 2015-16) to power plants against 352.29 MnT targeted for the period.
CIL, a major supplier of coal to the power sector, is also eyeing on production of 1 BnT by 2020. The government has set 550 MnT of output target for the PSU in FY16.
Source: SteelMint
Quantity in MnT
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