APMDC Suliyari coal upcoming auction 1,50,000 MT for MP MSME on 2nd Dec 2024 @ SBP INR 2516/- per MT
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New UserCoal India to allow buyers to lift coal within three years under eauction
25 Jan 2017
Coal India is planning to offer its eauction buyers an option to lift the purchased
coal any time in the next three years. According to the company, the move will not only
increase sales but also cut inventory costs of its customers.
For now, the option will be offered only to power firms. Last year, the company had allowed
customers to lift coal within six months of the date of purchase.
"In view of the excellent response to this option, we have decided it to extend it beyond a
year. It is expected to help book larger volumes of coal, as users would have the option of
lifting it whenever they need it, thereby saving on inventory costs," said a senior executive
from Coal India.
The company is currently working out the amount of coal it will offer for such sales and is in discussion with its subsidiaries. Some power
producers are said to be flush with coal because they have supply contracts with Coal India, while others that set up an estimated 31
gigawatts of capacity after 2009 are fuel starved.
On the other hand, some power plants with about 5,650mw capacity neither have coal nor powersupply contract with a distribution
company, while others with about 9,316mw capacity have coalsupply contracts but do not have powersupply agreements.
Additionally, plants with a total capacity of 2,940 mw have a letter of coalsupply assurance from Coal India and have managed to sign
power purchase agreements, but they have not been receiving coal from CIL. These plants could receive coal through longterm eauctions.
Source: ET