Companies

Coal India asks arms to stop e-auction of coal

Our Bureau Kolkata | Updated on October 14, 2021

Temporary move to tide over the low coal stock situation, says a senior officer

Coal India Ltd (CIL) has asked all its subsidiary companies to refrain from conducting any further e-auction of coal. The move comes at a time when there is less availability of coal at power stations and so as to prioritise supply of coal to the power sector to replenish the dwindling stock, the company said in an official circular. 

"In view of the above fact, coal companies are advised to refrain from conducting of any further e-auctions of coal with the exception of special forward e-auction for power sector, till the situation stabilises," it said.

Coal crisis triggers the need for alternatives

However, if in any case, any company found it necessary to liquidate any slow-moving stock through e-auction route without affecting despatch to the power sector, it should be communicated to CIL along with proper justification before any such action is planned, it added.

'Regular supply norm soon'

When contacted, a senior CIL official said that this was only a temporary prioritisation, in the interest of the nation, to tide over the low coal stock situation at the stressed power plants and scale up supplies to them. It does not, however, mean the stoppage of e-auction format.

"The company is increasing its production and offtake steadily. For the past four days, supplies to power sector are consistently at 1.61 million tonnes a day. Once the situation stabilises, expectedly within a short time, and stock at coal fired plants attains comfort level, other sectors will be brought back to their regular supply norm," the official said.

CIL has clocked around 10 per cent YOY growth in supplies to non-power sector during H1 of the current fiscal at a little over 62 million tonnes. The growth is almost 11 per cent as compared to the Covid free period of April-September 2019.

Published on October 14, 2021

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