Around 10% of the total coal produced by state-owned Coal India is sold through e-auction. Under e-auction, coal is sold at spot market price
New Delhi: Amid the power sector facing fuel shortage, the coal ministry has opined that diversion of a portion of e-auction coal to power producers will affect the fuel supply to other sectors, including steel and cement, reports PTI.
This follows coal minister Sriprakash Jaiswal stating that the government will divert coal under e-auction quota to power producers to meet the fuel crisis.
“Five Million Tonnes Per Annum (MTPA) of approximately 40-45 MTPA of e-auction was pertaining to the mines that have rail connectivity. This portion could be gradually diverted for use by the power sector. However, secretary, coal is of the opinion that this would affect the coal supplies to other sectors,” an official document on issues relating to coal for the power sector said.
Under e-auction, coal is sold at spot market price.
Around 10% of the total coal produced by state-owned Coal India (CIL) is sold through e-auction.
The matter had also come up for deliberations at a high-level meeting held recently. Coal secretary SK Srivastava and power secretary Uma Shankar were among those who attended the meeting.
“Keeping in view the shortfall in meeting the demand of the power sector and the obligation of CIL to honour Letter of Assurances (LoAs), the issue of reducing the quantity of coal sold by CIL, through e-auction was discussed,” the official document said.
Earlier, CIL had offered a certain portion of its coal meant for e-auction to power companies to ease coal shortage that caused frequent disruptions in electricity generation.
The power ministry had also, earlier, requested the coal ministry to provide coal supplies for power projects before going ahead with e-auction.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
inability to produce more. If and when they mined more coal, these are lying in the pitheads because of "logistics" and the inability of Railways to move it to the consuming point.
While profit is essential part of business, why not CIL make efforts to produce more and offer the over-production for spot market for sale?
By the way, why not offer a price reduction to those power generators who can pick coal from pitheads? Tonnes are lying at pitheads incurring "loss of interest" until moved ?
Our ministries spend time discussing issues. We need to resolve issues instead of spending time in talking about them.
Rapid action required to get the job done; not speeches please.