Coal India introduces special spot e-auction
scheme to reduce dependence on imports.
(courtesy: official face book page of coal India limited)
Coal India will soon notify the e-auction events for the period August 2020 to March
2021 under the scheme and coal companies will draw specific programmes for e-
KOLKATA: Coal India NSE 1.68 % has introduced a special spot e-auction
scheme for importers to boost sales and reduce India's dependence on imports.
Buyers including traders who imported coal after March 2018 are eligible for
bidding under the scheme.
In a notice, Coal India said: “Special Spot e-auction Scheme 2020 for import
substitution (only for coal importers) is being introduced...to attain 'Aatma
Nirbharta'. Coal distribution through this scheme...aims to provide access to
indigenous coal to...importers. Such importers may be importing coal for self-use
or for sale within India.”
A buyer can lift as little as 25,000 tones under the scheme if delivery is on trucks, and
can opt for additional lots of 1,000 tones. In case, coal is supplied on goods trains, the
minimum bid quantity will be 50,000 tones which is equivalent to 12 goods trains’
carrying capacity. Incremental bids will have to be 4000 tons or one train.
Bidders will need to quote prices in increments of Rs 10 per tones over the floor price to
begin with. It will be increased to Rs 20, Rs 30 and Rs 50 on a per tones basis gradually
as competition intensifies. The scheme will offer buyers the option of lifting the coal
within, three, six or 12 months.
According to Coal India several non-power plants are importing coal from different
countries for blending purposes or direct use. A need has arisen for consumption of
domestic coal instead of imported coal to save foreign exchanges as sufficient domestic
coal is available with Coal India, the company said in a recent circular.
At present Coal India’s stocks are at an all-time high of 75 million tonnes, while
stocks at power plants have touched 44 million tonnes.
Coal India is currently in talks with sponge iron, cement, and captive power
plants for offering coal on import substitution basis. The miner along with coal
ministry have decided to bring down imports for the purpose of blending to zero
this year. The plan is to tie up with consumers for substituting long term import