INSUBCONTINENT EXCLUSIVE:
Government has cleared supply of coal by companies through a common e-auction windowNew Delhi: Government on Saturday cleared supply of coal
by companies including Coal India Limited (CIL) through a common e-auction window rather than sector-specific auctions.The proposal was
cleared by the cabinet committee on economic affairs (CCEA), which held its meeting earlier in the day.In a statement, the coal ministry
said CCEA has approved offering of all the non-linkage coal by coal companies through one e-auction window of CIL and Singareni Collieries
Company Limited (SCCL). With this, market distortions would be removed and single rate for all the consumers will evolve in the e-auction
It will increase operational efficiencies and lead to an increase in domestic coal demand, it added.Apart from this, the discretion
presently vested in coal companies for allocating coal to different end use sectors will be eliminated
Further, the coal companies will be able to establish coal gasification plants by availing coal from their own mines.It shall help in
developing clean coal technology in the country, it added.This e-auction will cater to all the sectors, namely power sector and non
regulated sector (NRS), including traders
Coal would be offered through this auction in place of the present system of sector specific auctions."The above will be subject to CIL or
SCCL meeting the coal linkage requirements against existing linkages and do not impact the current linkages to power and non-power consumers
at contracted prices," it said."Coal offered through the single e-auction window shall be transport mode agnostic with default option being
through rail mode," it added.However, coal may be lifted by the consumers through the road mode or other modes depending upon their choice
and suitability without paying any additional charges or discount to the coal companies.Long-term allotment of coal by CIL and SCCL, without
affecting the supplies against existing coal linkages, to their own gasification plants will be allowed at prices as may be decided by the
coal company.However, the taxes, duties, royalty etc
shall be paid by the coal companies on the notified prices of coal for power sector.
