Coal e-auction News

State-run Coal India Limited (CIL)will next week hold the first phase of special e-auction for the ongoing fiscal to provide coal to power producers as part of the government's efforts to ensure round-the-clock electricity to all.

The government has already mobilised over Rs 3 lakh crore in the first three rounds of coal auction and allotment.

The move is aimed at ensuring adequate availability of coal for electricity generation.

Government came out with draft rules for e-auction of 92 cancelled coal mines in the first phase, fixing a floor price of Rs 150 per tonne.

State-owned Coal India Ltd has been asked to e-auction the surplus coal from those mines that have been facing evacuation constraints.

An inter-ministerial panel Tuesday decided the methodology for fixing the reserve price for coal auction and will seek the Cabinet approval for the same.

Days after promulgating an ordinance to e-auction Supreme Court-cancelled coal blocks, the government has formed a committee headed by former CVC Pratyush Sinha to assess compensation to be paid for taking over running or ready to produce mines.

The Centre has asked coal block allottees, whose licences were quashed by the Supreme Court, to provide land and mine infrastructure details by November 10 for the purpose of compensation under the Ordinance which has got the Presidential approval.

The Coal Ministry is gearing up to prepare the modalities of the proposed e-auction of coal blocks that may take place in January next year.

The development comes at a time when the demand-supply gap of coal is widening in the country.

Ficci said steps like reducing the fuel for e-auction and streamlining environmental clearances with time-bound approvals will help increase supplies.

Power Minister Piyush Goyal on Friday asked Coal India to raise production from existing mines.

Emphasising on the need to grant additional linkages from Coal India, Goyalsaid that CIL must cut e-auction of coal for additional supply to power companies.