In order to ensure greater availability of coal for the power sector, the coal ministry has decided to offer some of the e?auction coal to the sector this month. The move is expected to help power stations overcome temporary shortage of coal.
The e-auction coal will be made available against already concluded fuel supply agreements (FSA) with power producers. The power utilities will be expected to make their own arrangements for lifting and transportation of the commodity, a coal ministry statement said.
Coal India (CIL) currently sells 10% of its output per annum under the e-auction route. Under the scheme, companies quoting the highest price are offered the fuel.
Power companies have been asking CIL to discontinue e-auction and divert this coal for the sector to meet the acute shortages in the supply.