Coal India to Halve Offer Under E-Auction

Coal India has decided to halve its offer under e-auction from 300 million tonnes during 2016-17 to around 150 million tonnes this year, which will increase supply to fuel-starved power plants. Last year, the company managed to sell barely 100 million tonnes of 300 million tonnes offered in e-auctions. “We have already sold some 73 million tonnes of coal under e-auction and would now offer additional 77 million tonnes during the rest of the year,” said a senior Coal India executive.  Before summer, power companies reduced their stocks considerably, trusting Coal India’s ability to supply when needed. However, Coal India was unable to supply coal when demand surged, leading to critical stock situation at many power plants. During the ongoing monsoon, heavy rains in several parts of the country disrupted supplies to power plants, which has declined from 20 days during the beginning of the year to about 12 days now. Coal demand from power companies usually rises after monsoon. Coal India has readied an e-auction calendar that specifies how much coal would be offered subsidiary wise in different months under different modes of e-auction and different modes of transport to power & non-power CoS.