IIM-C to monitor coal sales via e-auction

Font Size

Print

Feedback

Email

Discuss

Kolkata, May 16: The Union coal ministry has appointed the Indian Institute of Management, Calcutta, to monitor the e-auction process initiated by Coal India Ltd (CIL) and its subsidiaries for selling coal to both linked and non-linked consumers, according to ministry secretary PC Parakh.

The ministry has set a target of selling 10 million tonne (mt) of coal via e-auction this fiscal and the figure will go up in future if the response of the consumers is positive.

The process of selling coal through online auctions is expected to enable migration towards market-determined prices against the prevalent administered prices, thereby eliminating black-marketing. This is also aimed at bringing in free sales of coal from the erstwhile "quota" or "linkages" regime.

"Initially we have set a modest target considering the resistance from some of the coal consumers who feel that they will have to pay more than the notified price as was seen during the trial e-sales," Mr Parakh said during the launch of coaljunction.com, the latest e-platform of Metaljunction Services Ltd, here on Monday.

He was flanked by Metaljunction managing director Viresh Oberoi and chairman and managing director of CIL’s subsidiary Bharat Coking Coal Ltd, Partha Bhattacharya. Metaljunction chairman T Mukherjee was also present on the occasion.

Metaljunction is a 50:50 subsidiary of the government-owned Steel Authority of India Ltd (SAIL) and private sector major Tata Iron & Steel Co.

Mr Parakh said, "Coaljunction has been launched to bring about efficiency and transparency to the way coal is sold. At the same time, the objective is to bring about fair market price realisation for CIL and its subsidiaries." He expects that Coaljunction’s e-marketplace would transform the domestic coal market, providing efficient buying and selling and complete range of services to the coal companies and its consumers.