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Coal E-Auction

Coal E-Auction:


Union Cabinet has approved offering of coal by coal companies through a common e-auction window instead of sector specific auctions.

  • The Cabinet Committee on Economic Affairs approved the following:
    • Offering of all the non-linkage coal by coal companies through one e-auction window of CIL (CIL) / Singareni Collieries Company Limited (SCCL).
    • This e-auction will cater to all the Sectors namely Power Sector and Non Regulated Sector (NRS) including traders and coal would be offered through this auction in place of the present system of sector specific auctions.
  • The above will be subject to CIL / SCCL meeting the coal linkage requirements against existing linkages and do not impact the current linkages to power and non-power consumers at contracted prices.
  • Coal offered through the single e-auction window shall be transport mode agnostic with default option being through Rail mode.
  • However, coal may be lifted by the consumers through the road mode/other modes depending upon their choice and suitability without paying any additional charges or discount to the coal companies.
  • Long term allotment of coal by CIL/SCCL, without affecting the supplies against existing coal linkages, to their own gasification plants shall be allowed at prices as may be decided by the coal company. However, the taxes, duties, royalty etc shall be paid by the coal companies on the notified prices of coal for power sector.
  • Market distortions would be removed and single rate for all the consumers will evolve in the e-auction market.
  • It shall increase operational efficiencies and lead to an increase in domestic coal demand by efficiency in domestic coal market.