Coal India Ltd (CIL) has invited interested bidders to participate in the Coal Linkage auction. The company had recently conveyed via a press release that it is going to conduct Tranche IV of the coal linkage auction for the non-regulated sector, in furtherance to policy guidelines issued by Ministry of Coal.
The Scheme document, schedule of dates and other details would be available shortly on the website of service provider MSTC Ltd. CIL has requested the bidders to get themselves registered on the website, if not done already.
Coal procurement under linkage auction has been envisaged as a transparent system of coal allocation which is based on competitive bidding. CIL has been conducting auction of coal linkages for Sponge Iron, Cement, Captive power plants (CPP), ‘Others (non-coking)’, Steel (coking) and ‘Others (coking)’ sub-sectors under Non-Regulated Sector, which ensures coal supplies for a longer time interval.
The tenure of the FSA (Fuel Supply Agreement) under linkage auction is 5 years which can be further extended by another 5 years on mutual consent.
CIL has successfully conducted three tranches of linkage auction whereby 45.18 MnT of annual coal quantity have been booked at an average premium of 9.64% over non-power’s notified price. Captive power plants have taken highest coal across the three auctions, followed by the Sponge Iron plants.
| Sub-Sector | Tranche-I | Tranche-II | Tranche-III | Total | |
| Jun’16-Oct’16 | Jan’17-Jun’17 | Sep’17-Nov’17 | |||
| Quantity | Quantity | Quantity | Quantity Booked | % Gain | |
| Sponge Iron | 2.05 | 4.29 | 2.54 | 8.88 | 7.55% |
| Cement | 0.68 | 0.77 | 0.12 | 1.57 | 0.56% |
| CPP | 18.07 | 8.18 | 4.59 | 30.84 | 12.68% |
| Others | 1.34 | 1.27 | 0.67 | 3.28 | 4.50% |
| Steel (Coking) | – | 0.22 | 0 | 0.22 | 0.00% |
| Others (Coking) | – | 0.04 | 0.36 | 0.39 | 2.68% |
| Total | 22.14 | 14.76 | 8.28 | 45.18 | 9.64% |
Source: Coal Ministry
Quantity in MnT
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