Indian power producers will be able to again replenish their fuel inventories as Coal India Limited (CIL) has scheduled the second phase of the special E-auction of coal for the producers, including captive power plants (CPP), on the 24th and 25th of May’16.
The first phase of the E-auction for the producers was concluded last month. The terms and conditions involving the E-auction will remain unchanged.
The reserve prices for power companies and CPPs will remain at 10% respectively over the notified prices for the respective segments; pertaining to the G6 and the lower coal grades. According to the information received, CIL subsidiaries will notify on their websites the reserve prices of coal, source-wise as well as grade-wise, for power companies and CPPs.
The Government of India (GoI) has put in place the E-auction mechanism, scrapping the Fuel Supply Agreement (FSA) practice, for supplying coal to power producers in the country, aimed at alleviating disruption in coal availability to improve power supply. The GoI has planned uninterrupted power supply throughout the country round the clock.
The erstwhile FSAs with power producers in the country will expire on 30Jun’16.