Coal news and updates

CIL cuts reserve price for special auction in March

Coal India Ltd (CIL), which had deferred the special e-auction of coal for the power sector and non-power sector consumers to February 16 and 18 respectively, will now conduct the auction in the first week of March with a reduced reserve price, an official said.

The reserve price for the auction has been fixed at 10% above the notified as against the earlier decision to fix the reserve price at 20% above notified, the official said.

In addition, the bidders will have to submit only 10% of the value of lot in which it plans to participate as bank guarantee as against the earlier norm of 20% of the value.

The decision has been taken after it received feedback from consumers that the reserve price needs correction in view of the current soft trend prevailing in international coal prices.

The special auction on coaljunction for power sector consumers would be held on March 1 while that for non-regulated consumers would be held on March 4 and 5.

In between, similar auction would be conducted on the MSTC platform as well.