Coal news and updates

Consumers keen to know tapered surplus details

March 20: It seems certain sections of coal consumers are preparing a set of proposals to be submitted before the Ministry of Coal (MoC) and Coal India (CIL) seeking details on the excess coal that will come into the system from CIL’s mines post the auction of the blocks, ICMW has learnt.

A key fallout will be that due to increased production and supplies injected into the system because of the coal block auctions, automatically linkages will be tapered off. Now many in the industry are raising queries as to where will the quantity of coal saved from the tapered linkages be supplied to?

“There will be some surplus in the CIL subsidiaries after the blocks are being auctioned off and the end-use plants start sourcing the coal from their own mines. After say one-and-a half or two years hence the volumes tapered off from these EUPs will be available. But whom will this be diverted to?” said a source closely linked to the proposals being prepared for submission before the MoC and CIL.

The source added: “We are thus working on a proposal to submit before the Ministry of Coal and Coal India to make available to its consumers the plan as to how this excess coal will be utilised. Whether it will go to any particular industry etc,” said the source.