CCEA okays coal supply via single e-auction window

New Delhi, February 26

The government today approved a proposal to allow coal companies, including state-owned Coal India Limited (CIL), to offer the dry fuel through a common e-auction window.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The government, in a statement, said the usage of a common e-auction window would replace the present system of holding sector-specific auctions. It said the decision would help “remove market distortions” and provide a “single rate for consumers”.

The CCEA has approved the “offering of all non-linkage coal by coal companies through one e-auction window of the CIL (CIL)/Singareni Collieries Company Limited (SCCL)”, it added.

“The e-auction will cater to all sectors namely Power and Non-Regulated Sector (NRS), including traders, and coal will be offered through the auction in place of the present system of sector-specific auctions,” it read.

The e-auctions, however, will be subject to the CIL/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.

“The long-term allotment of coal by the CIL/SCCL, without affecting the supplies against existing coal linkages, to their own gasification plants shall be allowed at prices as may be decided by the coal company. However, the taxes, duties and royalty shall be paid by the coal companies on the notified prices of coal for power sector,” the statement noted.