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Low-grade coal to stockpile if e-auction offer reduced

25 Jul 2014

July 25: The reduction in the e-auction quantity offered by Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL), as proposed by the Ministry of Coal (MoC), will lead to increased stockpile of low graded coal, industry sources said.

“If the e-auction limit is reduced drastically, low-graded coal will remain unsold. This will not only lead to loss of revenue but add to the already high stockpile at pithead,” the sources said.

The low-graded coals offered by CIL and SCCL are generally sold via e-auction at the floor price level.