Coal news and updates

Coal India on Wednesday said auction of coal linkages would be conducted for the sponge iron sector initially and the bid schedule will be released on Thursday.

The Coal Ministry had earlier issued policy guidelines and directed CIL to conduct auction of coal linkages for the non-regulated sector such as cement, steel/sponge iron and aluminium with a view to ensuring fuel availability to end users.

"To begin with, auction shall be conducted for sponge iron sub-sector, which shall be followed for other sectors," Coal India (CIL) said in a filing to the BSE.

The Coal Ministry had earlier issued policy guidelines and directed CIL to conduct auction of coal linkages for the non-regulated sector, the PSU said in the filing.

"Registration requirements, schedule of dates for submitting applications and other details will be available on the website of service provider, MSTC Ltd... from May 26, 2016," the filing said.

The government had earlier said that allocation of coal linkages for the non-regulated sector, which includes steel and cement, will be only through the auction route to ensure transparency.

Sectors included are cement, steel/sponge iron, aluminium, and others (excluding fertiliser, urea).

The framework attempts to make coal available in a fair manner to end-users, Power Minister Piyush Goel had said.

Coal Secretary Anil Swarup had said that coal linkages for 24 million tonnes would go under the hammer in the first year.

Source: dnaindia.com