CIL notes 28% decline in coal allocation held via e-auction in April

27 May 2021 CW Team

India’s largest coal producer, Coal India Ltd (CIL), witnessed a 27.9% drop in its coal allocation to the power sector via forward e-auction in April as allocation stood at 2.19 million tonne (mt), compared to 3.04 mt in the same period last year.

Despite this, the allocation by public sector undertaking (PSU) under the scheme has currently jumped to 39.33 mt from 27.12 mt the previous year.

The coal distribution targets long term consumers that require coal for a year or so and provide them access to coal through e-auctions.

The scheme provides equal opportunities in purchasing coal to all the consumers through single window services at a price defined by themselves through online bidding.

The process of forward e-auction enables nationwide customers to purchase from various choices through online booking and helps them buy dry fuel through a consumer-friendly market.

Coal India Ltd is currently a leading supplier of coal in the country. CIL, which produces 80% of domestic coal output, targets a fuel output of 1 billion tonne by the fiscal year 2024.

Coal Minister Pralhad Joshi earlier stated the company will invest over Rs 1.22 lakh crore in projects like -- coal evacuation, exploration and clean coal.

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Also read: Coal mine auctions: Commercial tranche 2 gains traction

Also read: Coal India’s fuel allocation via spot e-auction surges 43% in FY21

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