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CIL To Offer 21.5% More Coal To Power Generators Through Forward E-Auctions

Coal News - Published on Tue, 18 Jun 2019

Image Source: Deccan Chronicle
ET reported that state-run Coal India has decided to offer 21.5% additional coal this fiscal to power generators through forward e-auctions, while it will reduce offerings in the spot auction market from 2018-19 level by almost 4%. A senior executive at the coal behemoth said the company will offer 33 million tonnes of coal through forward e-auctions in 2019-20 compared with 27.14 million tonnes in 2018-19. About the same quantity will be offered through the spot auctions market during the year compared with 34.34 million tonnes in 2018-19.

For the non-power sector, Coal India will offer about 64 million tonnes of additional coal for long-term supply contracts through an auction mechanism, adding that the rest of the coal, estimated at about 530 million tonnes, will go to power producers with long-term supply contracts.

Successful bidders in the forward auctions will have the option of lifting their allotted quantities in portions over at least two years, offering power houses a secured source of coal for the period. While only power houses are eligible to participate in forward e-auctions, the spot auction market will be open to all.

According to a special forward auction calendar for 2019-20 prepared by Coal India, the highest quantity of 8.5 million tonnes will be offered by Coal India subsidiary South Eastern Coalfields, followed by Mahanadi Coalfields at 8 million tonnes. Northern Coalfields plans to offer about 5 million tonnes while Central Coalfields will be offering 3.85 million tonnes. Western Coalfields plans to offer 2.9 million tonnes.

Source :

Posted By : Sanju Moirangthem on Tue, 18 Jun 2019
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