Considering the unstable stock position at the electricity generating power plants, state-run Coal India Limited (CIL) asked its subsidiaries to refrain from performing further e-auction of coal till the situation stabilizes.
Coal India stated to its subsidiaries via a letter that the supply of coal to the power sector is being prioritized in the regard of current status of low stock position. Coal corporations are recommended to refrain from summoning any further e-auctions of coal, except the special forward e-auction for the power sector till the situation low coal stock stabilizes.
Coal India’s subsidiaries include ECL (Eastern Coalfields Limited), BCCL (Bharat Coking Coal Limited), and CCL (Central Coalfields Limited).
The letter also stated that if any coal corporation realizes it necessary to sell any slow-moving coal stock through the e-auction route without having an impact over dispatch to the power sector, the update would be communicated to CIL which would additionally expect a transparent and proper justification prior to the planning of any such auction.
Coal India unveiled that the prioritization of supplying coal to power stations is not permanent, being in the interests of the country, in order to bring into control the low level of coal stock situation at the coal-deprived power plants. The establishment mentioned that this does not imply the stoppage of e-auction format.
The company also shared that it is spurring its operations on the production and as soon as the situation comes under control, other sectors will be brought back to their normal and regular “supply norm”.
Coal supply and distribution through the exceptional forward e-auction is expected to deliver access to coal for such types of consumers who want to acquire an assured supply of coal for a longer period of time via e-auction format to chalk out their operation.
The key purpose of this step is to bestow opportunities to all potential coal consumers to buy coal for their required consumption at a price which is calculated among them with the help of the online bidding process.
The Forward e-auction scheme is sketched out to facilitate all the Indian coal consumers with various choices of booking coal over the internet, thereby allowing them to purchase the fuel through an uncomplicated and consumer-compatible system of marketing. Coal India is considered as one of the major coal suppliers to the power sector which holds over 80 per cent of domestic coal production. The Kolkata-based coal and refining corporation is under the ownership of Ministry of Coal, Government of India and is considered as the largest coal-producing company in the world.