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

10 May 2021 CW Team

According to government data, Coal India (CIL), which accounts for more than 80% of India’s coal output, has allocated 29.83 million tonne (mt) of dry fuel in 2019-20.

CIL issued 42.51 mt of coal in 2020-21 under the scheme of spot e-auction, registering a year-on-year increase of 42.5%. According to the CIL’s website, coal distribution through e-auction was introduced with the aim of providing access to coal for buyers who are unable to source the dry fuel through the available institutional mechanism. Under the scheme, the fuel allocation by CIL increased to 5.30 mt in March, from over 2.532 mt in the corresponding month of 2019-20.

CIL, which accounts for more than 80% of domestic coal output, plans 100 crore tonne of production by 2023-24. The primary purpose of e-auction is to provide equal opportunity to all intending coal buyers for purchasing coal through the single window service.

The state-owned firm will fund more than Rs 1.22 lakh crore in projects that are related to coal evacuation, clean coal technologies and exploration by 2023-24 to achieve the target.

CIL has planned to invest Rs 32,696 crore on coal evacuation, Rs 29,461 crore in project development and 25,117 crore on mine infrastructure, out of the proposed spend of over Rs 1.22 lakh crore by 2023-24.

The state-owned company would also invest Rs 32,199 crore in clean coal technologies and diversification, Rs 1,893 crore on exploration works and Rs 1,495 crore on social infrastructure.

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Also read: Domestic coal production in February fell 6.1%

Also read: CIL approves most capacity addition in a year

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