In a move to set aside sufficient coal for the thermal power plants in India, the state-run miner—Coal India Limited (CIL)—has decided to halve the coal allocation for E-auctions during FY18 from 300 MnT to 150 MnT.
There has been tepid demand for coal at E-auctions conducted by the coal major. In the last fiscal, CIL was able to sale barely 100 MnT of the allocation of 300 MnT.
According to the inputs received, CIL has managed to sale only 73 MnT in the E-auctions conducted so far within this fiscal; and in view of the subdued demand, the CIL management has now decided to put aside another 77 MnT for E-auctions to be conducted in the remaining months of the current fiscal.
CIL believes that demand for coal from the power sector will rise after the monsoon season getting over. During the ongoing monsoon season, coal supplies to many power plants were cut-off as such, coal stocks decreased in many power plants.
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