CIL determining quantity for auction to non-regulated sectors

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26 Aug, 2025 12:21

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State-owned CIL is in the process of identifying the coal quantity to be auctioned to non-regulated sectors even as its fuel supply pacts with some consumers in these industries, including steel and cement, lapse next month.

"The government took a decision that the coal linkages will be provided to non-regulated sectors such as steel and cement through auction. Coal India is still in the process of firming up the quantity of coal to be put for auction," an official said.

Asserting that the government is yet to issue an official memorandum on the modalities of e-auction, the official said for the ease of doing business, the world's largest coal miner would ensure that location of the plant of the customer is close to the coal source.

"The company is mapping both the customer's location and source location," the official added.

Stating that Coal India was still in the process of identifying the quantity to be auctioned, the official said that "certainly between 25-30 million tonnes of coal would go under the hammer." The government had earlier this month said that it is planning to auction coal linkages of around 24 million tonnes in the first year.

To ensure coal supplies and a level playing field to non-regulated sectors such as steel and cement, the government had earlier said that coal linkages will be provided to them only through auctions, which will kick off later this month.

Stating that the process of giving coal linkages was not fully transparent, Coal and Power Minister Piyush Goyal had said that there were many complaints about the whole process.

Coal Secretary Anil Swarup had earlier this month said that "the exercise (for auction) will start in 7-10 days... It should take 2-3 months as happens in an auction to finalise that. Let us put it about April-end, we should be able to put it in operation.