Merger of multiple e-auction windows into one will help expand customer base, boost demand: Coal India

By: |
December 13, 2020 10:16 PM

"When pithead coal stock is nearly 70 million tonne and we have a surplus situation, the idea of putting all e-auction coal in single bucket will help expand the base of customers. This will result in a higher offtake," a Coal India official told PTI.

The mines ministry had proposed legislative amendments to the MMDR Act, 1957 for undertaking structural reforms with the objective of accelerating growth and employment generation.The mines ministry had proposed legislative amendments to the MMDR Act, 1957 for undertaking structural reforms with the objective of accelerating growth and employment generation.

With surging pithead stock and a surplus scenario in the sector, Coal India is in favour of tweaking its e-auction policy to broaden its customer base and maintain a steady bottomline, an official said on Sunday.

The idea of “putting all e-auction coal in single bucket” will help realise a higher off-take, he said.

“When pithead coal stock is nearly 70 million tonne and we have a surplus situation, the idea of putting all e-auction coal in single bucket will help expand the base of customers. This will result in a higher offtake,” a Coal India official told PTI.

The government had indicated that the reform measures could be taken in the marketing of the fuel.

The allocation of coal for e-auctions is “more than demand at present” even though there are signs of revival in the  economic activities after the lockdown.

The coal behemoth conducts five types of e-auction of the dry fuel for its customers.

Adopting a policy of conducting one auction for all types of customers is aimed at broadening the customer base, the official said.

The PSU major had recently allowed its subsidiaries to fix the base price for e-auction depending on demand to improve their margins.

However, Coal India registered a 77 per cent growth in e-auction sales under the five windows, with a booking of 68.3
million tonne in the April-November period in the current fiscal as compared to 38.6 million tonne booked during the
year-ago period.

In absolute term, there was a 30 million tonne increase in the e-auction coal booking.

With an increased appetite for the fuel from non-power consumers, the exclusive auction for this sector witnessed a
booking of 17.4 million tonne which was 25.5 per cent of the total allocated quantity during the period, he added.

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