CIL allowed to sell more coal via e-auction

In a boost to Coal India Ltd, the government has increased the quantity of coal that the state-owned miner can sell through e-auction. Coal India Ltd had last year sold 7 percent of the total sales through e-auction.

The government had in a letter dated April 1 written to Coal India stating that the modalities of e-auction of coal beyond March 31, 2015 was considered by the ministry.

"With the approval of the competent authority, it has been decided to revert to the old system (on e-auction)...," the letter said. Under the old system, Coal India was allowed to sell up to 10 percent of coal through e-auction. According to the source, Coal India may take a decision of allowing the e-auction of coal up to 10 per cent.

Under e-auction, coal is sold at spot market price. Last year, Coal and Power Minister Piyush Goyal had asked CIL to reduce the quantity offered in e-auctions so that power utilities can get more supplies of the fuel. The company was directed to limit e-auctioning of coal to 25 million tonnes in the last year from 57 MT.