Coal news and updates

Govt not mulling hike in e-auction quantity in near future

January 20: The government has no plans as of now to increase the quantity of coal to be sold through the e-auction route from the existing 25 million tons per annum, but may ask Coal India Ltd (CIL) to announce before March 31, 2015 its plans for e-auction of coal with details of quantity to be offered during the period April to September 2015, Secretary (Coal) Anil Swarup has said.

Asked if the government, which had capped the e-auction volumes to 25 million tons for 2014-15, will increase the quantity, the Secretary (Coal) replied in the negative.

“It (the offerings under e-auction) will depend on the availability of coal and requirement with regard to the commitments that CIL has made,” he explained.

“It may not be appropriate to e-auction coal when you are unable to meet commitments already made. For example, if I have committed X quantities through FSAs or linkages but am unable to fulfil that, then I shouldn’t be auctioning. Because my first commitment is to those players who have been promised a particular linkage,” Swarup said.

On announcing the e-auction plans for the next six months beginning April 2015, Swarup said there has to be predictability about the availability of coal, so that consumers can plan their procurement.

“We have already done it, as you will see that till March 31, 2015 the quantity has been decided and well before March 31 we will lay out a plan for the next six months so that you have predictability of coal availability,” Swarup said.