Coal news and updates

After conducting auctions of coal linkages for the sponge iron sector, CIL will go forward with the bidding for the cement sector by the end of this month. Coal India (CIL) has been directed to conduct auction of coal¬linkages for the non¬regulated sector to ensure fuel supply to end users. According to a source, the e¬auction for the cement sector is scheduled to start from June 28. "Notice inviting application (for the auction of linkages for cement sector) was published on June 11," the source said. 

This will the second sale of the dry fuel for non¬regulated industries through bidding route. The Cabinet Committee on Economic Affairs had in February decided that the allocation of coal linkages for the non¬regulated sector will be done through an auction¬based mechanism. Subsequently, the coal ministry issued a letter to CIL for auction of coal¬linkages for sectors like cement, sponge iron/ steel, aluminium and others (excluding fertiliser, urea), through a competitive bidding process. CIL decided to auction coal linkages for an annual contracted quantity of approximately 23.25 MTPA for the non¬regulated sector. The PSU has already conducted auctions of coal linkages for the sponge iron sector. Tata Sponge Iron recently said it has won the bid for delivery of 24,000 tonnes of coal from CIL.

Economic Times