India’s coal behemoth, CIL is likely to offer 120 MnT coal in FY17 through forward auction. The offered quantity will be auctioned for both power and non-power sectors.
The state run largest coal miner, Coal India is planning to auction 120 MnT coal this year through forward auction method. The mentioned quantity will be allowed for both power and non-power sectors, who do not have any FSA (Fuel Supply Agreement) with government.
Initially, CIL had conducted its 1st phase of e-auction with 4 MnT coal, which concluded in Apr’16 and completely experienced a good response from consumers. While, the 2nd phase is schedule on 30 May’16, which will based on the terms and conditions as the previous auction.
In the meantime, the government is also planning to offer about 60 MnT coal in 1st six month of the year. In addition, if response will be favourable, CIL will offer more 60 MnT coal in the next six months. However, total 120 MnT coal will be offered this year.
Mentioned by a senior official of CIL, “A bulk quantity from the targeted material will be get supplied to the power sector running 30,000 MW plants without any FSA from Coal India.”
These include all power producers those had lost coal blocks and also whose supply contracts expire in July. Coal India is looking at offering 8 MnT of coal to power companies and 2 MnT to other sectors every month.
Also mentioned, the main problem facing by the company in domestic coal distributions is that the National Coal Distribution Policy (NCDP) does not allow CIL to directly supply coal without FSA. But based on the current scenario, the NCDP has to reconsider once again the new policy for coal in India.
Currently in India, about 57000 MW plants are facing fuel scarcity owing to without FSA. Out of these, about 9000 MW plants have achieved operations through different coal sources and rest 48000 MW plants are still struggling with many stages of constructions. Besides, there are also about 6000-7000 MW power plants, having PPA in process without any FSA with CIL.
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