Coal India's Fuel Allocation To Power Sector Under E-Auction Rises 8% In April-August
A front loader loads coal onto a freight wagon at a rail line funded by Coal India Ltd., in Jharkhand, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Coal India's Fuel Allocation To Power Sector Under E-Auction Rises 8% In April-August

Bookmark

Coal India Ltd.'s coal allocation under special forward e-auction for the power sector registered a rise of 8.4% to 7.94 million tonnes in the 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, according to the monthly summary by the Coal Ministry for the Cabinet.

In August, however, there was no coal allocation under the scheme, the miner said. In August 2019-20, 0.62 MT coal was allocated to the power sector by the company.

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.

The purpose of the scheme is to provide equal opportunities to all intending 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 consumers 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.

Coal India is one of the major suppliers of the fossil fuel to the power sector. The company, which accounts for over 80% of domestic coal output, is eyeing 710 MT output in 2020-21.

The PSU is eyeing 1 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.

Also read: Coal India Reports First Rise in Monthly Shipments Since Feb.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.