CIL’s coal allocation to power sector under e-auction drops 29% in Q1

By: |
July 27, 2020 3:49 PM

Coal India Ltd (CIL) had allocated 6.65 million tonnes (MT) of coal in April-June period of the last fiscal, according to coal ministry data.

CIL is one of the major suppliers of coal to the power sector.CIL is one of the major suppliers of coal to the power sector.

State-owned CIL’s coal allocation under special forward e-auction for the power sector declined 28.7 per cent to 4.74 million tonnes in the first quarter of the ongoing fiscal, official data showed.

Coal India Ltd (CIL) had allocated 6.65 million tonnes (MT) of coal in April-June period of the last fiscal, according to coal ministry data. Coal allocation by the Maharatna firm under the scheme declined to 0.64 MT last month, from 0.88 MT in June 2019, the data showed.

Coal distribution through forward e-auction is aimed at providing access to coal for such consumers who wish to have an assured supply over a long period, say one year, through e-auction mode so as to plan their operations.

The purpose of the scheme is to provide equal opportunities to all intending coal consumers to purchase coal for own consumption through single window services and at a price determined by themselves through the process of online bidding.

CIL is one of the major suppliers of coal to the power sector.

The PSU, which is already reeling under the impact of the COVID-19 crisis which has hit demand and supply of coal, had recently said the situation will remain uncertain in July-September as some states are resorting to fresh lockdowns.

The state-owned miner produced 18.05 MT of coal during July 1 to July 16 against an output of 19.61 MT in the same period last year.

Coal production in some of the major mines is still affected due to high coal stock and less offtake.

Pithead stock of CIL as on July 16 was 72.88 MT as compared to 33.17 MT during the same period last year, it had said.

Coal India, which accounts for over 80 per cent of domestic coal output, is eyeing 710 MT of coal output in 2020-21.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Idea Exchange | Disproportionate energy on tech firms vs govt narrative. The conversation must happen but not framed as a daily debate: Ajit Mohan, MD, Facebook India
2Q1 performance: NTPC profit rises 27% to Rs 3,146 crore
3Digital Deals: This classroom is a buzzing business