Coal Ministry plans to supply extra coal from CIL’s production to coal craving non-regulated sector to avoid chaos during forthcoming coal supply auction.
Indian coal ministry after taking a big step about a week ago, ie reserving 10 leftover coal blocks for captive power plant, steel and cement in the next auction, has now decided to introduce quota system in coal auction. Centre has decided to follow a new policy in which it will reserve a particular quantity of coal for specific sectors. And the same will be revised by experts periodically.
For time being, government has chosen non-regulated sectors namely, iron, steel, aluminum, cement and fertilizer plants. Coal India will invite bids from these non-regulated sectors for a specific quantity of coal.
The paperwork for the same can be expected any time soon. Meanwhile, coal ministry is planning to evaluate spare coal left after fulfilling CIL’s supply commitment to others.
It should be noted that earlier in Apr’15, centre had already permitted CIL to offer 10% of its annual production to offer through e-auction. This implies that if Coal India achieves its production target for the FY16 ie 550 MnT, it would be offering 55 MnT of coal for sale through e-auction.
The above measure of the government can act as relief for non-regulated sectors, craving for coal supply.
-sourced
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