Coal India, a largest coal producer in the world has decided to offers 2o MnT coal under special coal auction in FY17. Under this, the smaller consumers and traders can also participate in the auction.
Owing to poor offtake and falling sales of CIL in the running fiscal, the company has set to deposit an additional 20 MnT coal in the open market with flexible offtake options in FY17.
All updates related to the special auction will be vailable on the website of CIL, its subsidiary companies and those of Service providers’ viz. MSTC and Mjunction from 28 Sep’16.
The Coal Ministry had earlier said that power producers being supplied coal through the MoU route by CIL will have to take it via special e-auction being conducted for the power sector.
The onetime special auction is an opportunity for CIL to create a domestic market for fuel. Owing to several regulations, CIL has been losing its market opportunities day by day. On one side where CIL faces a lack of demand from the country. On the other side the country imported 2 MnT more petroleum coke till Sep’16 which does not attract (INR 400/MT) clean energy cess, seems harmful for the country.
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