Coal news and updates

No restriction on state agencies to cut e-auction volumes

August 26: Although the Centre has asked the coal miners to reduce offerings through the e-auction route, the state agencies mining and selling coal on commercial basis are not being imposed any such restrictions, a source in West Bengal Mineral Development and Trading Corporation (WBMDTC) told ICMW.

“There are no restrictions on us to reduce the e-auction volume. We are allowed to choose the mode of marketing ourselves,” the source said.

WBMDTC, which has been allocated six coal blocks, started production from one (Trans Damodar coal mining project at Barjora) in 2012 and sells the majority (two-third) of its coal through e-auction. Only the slack part is sold to power generators through separate yearly supply agreements.

“At present, the demand for coal from our buyers is much more than what we can provide. E-auction is the only way we can distribute the coal through a transparent manner,” the source said.