Coal news and updates

CIL to offer 5 mt additional coal to power sector through special auction

Coal India Ltd (CIL) is planning to offer around 5.5 million tons (mt) of coal to power sector consumers through a special forward auction to be conducted in February and March, a company official said.

The company had earlier offered 15 mt coal to power sector (10 mt) and non-power sector (5 mt) consumers in November 2015.

Of the total offering back then, around 9.5 mt was booked by the consumers and the balance 5.5 mt remained unsold.

“So for the balance 5.5 mt, we have put up a notice and will offer for auction. The auction will be done in February and March,” the official added.

Asked if the company is planning to supply more than FSA quantity to power sector consumers in view of increased production and consequent rise in vendible stocks, the official said, “There is at present a flat demand for coal from the power sector. Till the demand for power increases, demand for coal will not improve.

“However, we are giving additional coal to some pithead plants so that cheaper power can be made available to the consumers at large,” the official added.