CIL's coal allocation to power sector under e-auction rises 8% in April-August

CIL's coal allocation under special forward e-auction for the power sector registered a rise of 8.4 per cent to 7.94 million tonnes (MT) in April-August period of the ongoing fiscal. The state-owned company had allocated 7.32 MT of dry fuel in the corresponding period of the previous fiscal year, according to the monthly summary by the coal ministry for the Cabinet.

However, in August there was no coal allocation under the scheme, Coal India Ltd (CIL) said.

In August 2019-20, 0.62 MT coal was allocated to the power sector by the company, it said.

Coal distribution through forward e-auction is aimed at providing access to coal for such consumers who wish to have an assured supply over a long period, say one year, through e-auction mode so as to plan their operation.

Also Read: SAIL exploring new markets to source coking coal: Chairman

The purpose of the scheme is to provide equal opportunities to all intending coal consumers to purchase coal for own consumption through single window services as per requirement and at a price determined by themselves through the process of online bidding.

Forward e-auction is aimed at facilitating all the consumers of coal across the country with wide-ranging choice for booking coal online, enabling them to buy dry fuel through a simple, transparent and consumer-friendly system of marketing of the fossil fuel.

CIL is one of the major suppliers of coal to the power sector. The company, which accounts for over 80 per cent of domestic coal output, is eyeing 710 MT output in 2020-21.

The PSU is eyeing one billion tonne of output by 2023-24. The company will pump over Rs 1.22 lakh crore in projects related to coal evacuation, exploration and clean coal technologies by 2023-24, to achieve 1 billion tonne of fuel output target, Coal Minister Pralhad Joshi had said.