Coal India Limited (CIL) has increased its target for selling coal through auction in this fiscal to 120 MnT, aimed at not only improving supply especially to the power sector but also to lower imports into the country.
In the previous fiscal, CIL had sold 66 MnT through auctions.
In the current fiscal, CIL has been auctioning 10 MnT ( 8 MnT for the regulated sector and 2 MnT for the non-regulated sector) every month to supply to entities, which do not have fuel supply agreements with CIL or have lost their mines following a Supreme Court order.
Coal consumption is in the country is likely to increase in the near term in India as stocks have gone down both at the power plants in the country as well as at CIL; and global prices are on the rise.
To encourage private entities to procure coal domestically, CIL is offering discount of 35% for lower grades and 20% for middle grades.
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