The Coal Ministry has allowed CIL to offer more Coal via e-auction in FY16, increasing the quantity from about 35 MnT in FY15 to a probable 55 MnT.
With the commencement of FY16, Coal Ministry has permitted national miner “Coal India” to offer 10% of its total output through e-auction. Although CIL missed its production target by 3% and produced about 494 MnT instead of 507 MnT in the last financial year, the company has set a target of 550 MnT for FY16. As such if the target is achieved, the liberty provided to CIL will enable it to render 55 MnT (10% of 550 MnT) of Coal for sale through e-auction in FY16.
In FY14 CIL had put about 58 MnT i.e. 12.5 % of its total production quantity in e-auction. However, in the last fiscal the company suffered sudden enjoins from Indian Coal Ministry to decrease the quantity offered in e-auction to 7% . This was done in order to accommodate government’s strategy to provide more Coal to power companies.
As a consequence of CIL’s reduced e-auction quantity and other domestic issues that prevailed, India’s total Coal import increased by about 28 % in FY15 as compared to that in FY14. About 181 MnT of Coal was reported to be imported in FY14.
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