The government is looking at bringing in reforms in the marketing of coal by Coal India Ltd (CIL) to bring in a sense of “balance and satisfaction” to the users by ensuring market discovery of prices.

According to Anil Kumar Jain, Secretary, Ministry of Coal and Mines, apart from commercial mining in coal, the next set of reforms would be in marketing of coal produced by Coal India.

CIL accounts for nearly 80 per cent of the country’s total coal production, and the coal is sold through auctions including spot and forward. The reform would aim to do away with multiple types of auctions and bring them all under one common platform.

‘Single bucket’

“We want to finish all these auctions and want to bring it into one bucket so that there is market discovery of prices. These little buckets are no longer serving the purpose they are only enhancing the price of raw materials to some sectors so if we put them all together it will bring prices down and will bring some sense of balance and satisfaction to the market,” Jain said while addressing the Minerals, Mining and Metals e-Conclave organised by the Bengal Chamber of Commerce and Industry here today.

According to a senior executive of CIL, when auctions are conducted under different buckets, the bidding process gets affected either directly or indirectly as only that particular section of consumers are bidding. Bringing all auctions under one platform would help bring a level playing field for all consumers.

“Less consumers mean less bidding and prices fetched will be lower; if consumption is more then prices will move accordingly. So it will be market-oriented and will also help make the whole system transparent,” the official said.

CIL would wait for government directives to move forward with this, he added.

Jain said, “mining reforms are on the table and are likely to be announced very soon. They are very critical strategic reforms and strategic consultations are taking place at all levels.”

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