Coal news and updates

Coal India may auction 45 mt coal in 2014-15

March 17: Coal India Ltd (CIL) may auction a total of around 45 million tons (mt) of coal in 2014-15, Coal Minister Piyush Goyal has said.

On February 19, ICMW had reported, quoting an official, that CIL is aiming to end financial year 2014-15 with total sales of 45-46 mt of coal through the e-auction route consequent to the increase in production and improvement in coal stocks at power plants.

The official had told ICMW that with the increase in production and slightly lower demand from power companies during the past two months starting December, the company has increased the quantum of offerings through e-auction.

Goyal, however, said in a written reply in the Rajya Sabha recently that during 2014-15, the quantity of coal to be sold under e-auction is expected to be approximately 45 million ton which is around 9% of the estimated production of coal during the year.

He said, coal is distributed to different consumers/sectors at the notified price as per provisions of the New Coal Distribution Policy (NCDP) dated 18.10.2007 promulgated by the Ministry of Coal.

As per the NCDP, around 10% of the estimated annual production of Coal India Limited (CIL) was initially to be offered under e-auction and the quantity to be offered was to be reviewed from time to time by the Ministry of Coal, Goyal added.