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Govt plans two coal e-auction windows for stressed power units

The government will create two dedicated e-auction windows for coal, targeted at the stressed power companies without blocks or linkages till the new framework is out.

Speaking to reporters on the sidelines of an interactive session at Bharat Chamber of Commerce, Coal Minster Piyush Goyal said this would be a short-term measure for power companies with or without power purchase agreement (PPA) to all the linkage holders who get coal under CCEA decision of 2013.

To begin with, five million tonnes of coal will be provided in each new e-auction windows to offer level.

Asked if allocation to these power-dedicated e-auction windows would be over and above 10 per cent of Coal India's production going to existing e-auction platform, Goyal said, "It is an operational matter."

Goyal said the e-auction floor price would be set at notified price plus 20 per cent for those having existing PPA and notified price plus 40 per cent for power generators who do not have PPA.

The two e-auction windows will serve the two categories. Both of these would be transparent processes through which everybody who don't have coal would have equal opportunity, the minister said.

However, he said, this is a temporary solution till we come out with a framework, which will be a permanent solution.

Meanwhile, Coal Consumers' Association welcoming the coal linkage to stressed utilities said the determination of floor price above 20 per cent and 40 per cent over the notified price would not serve the purpose and encourage import.

Adding they said the investment decisions had been taken by the companies based on assured fuel supply at notified price and cancel the existing linkages would jeopardise their company's economics.

source: http://www.business-standard.com