E-auction coal will not be diverted to power sector
Our Bureau
Kolkata, May 24:

The Union Coal Minister, Mr Sriprakash Jaiswal, has ruled out the possibility of diversion to the power sector of the coal being sold by Coal India Ltd (CIL) through the e-auction route.

In a petition to the Power Ministry last week, private power producers had sought discontinuation of e-auction sales, accounting for a little over 10 per cent of CIL's 430-million-tonne annual production, to mitigate the demand of the power sector. The issue is expected to come up for discussion during the high-power meeting on availability of coal to be convened by the Prime Minister, Dr Manmohan Singh, in June.

“E-auction was introduced as per the order of the Supreme Court to ensure easy availability of coal to smaller consumers who do not enjoy linkages. There is no question of discontinuing the system,” Mr Jaiswal told newspersons on Monday evening. He was attending a programme to celebrate the award of Maharatna status to CIL.

According to the Minister, the auction is also playing an important role in liquidating the huge 70-mt stock pile at CIL mines.

“E-auction mainly caters the smaller consumers who prefer to transport the coal by road. Considering the availability concern for railway rakes, there is a high probability that discontinuation of the auction would only add to the pit head stocks,” he said.

Commenting on the issue, Mr P.K. Chand, president of Coal Consumers Association of India (CCAI) and the CFO of Birla Corp, told Business Line that continuation of e-auction was necessary in meeting the requirements of the non-regulated sectors like steel, cement and others.

“As per the national policy, the non-regulated sectors are forced to procure a minimum of 25 per cent of its requirement from the open market. If the e-auction is withdrawn, these sectors will be severely hit,” he said.
Hindu Business Line