Coal India Ltd (CIL) declared on Friday that it has only launched a new category of spot e-auction for importers to substitute 150 million tons of international fuel with domestic fuel. The coal produced under the “Special Spot E-Auction Scheme 2020 for import substitution” will be used within the country.
“This move is in a bid to attain the government’s thrust on reducing coal import dependency of the country under the Atma Nirbhar plan. Coal imports of 150 million tonne can be replaced with this new scheme,” a Coal India official said.
The miner said that the new system is an alternative to the current four types of e-auctions.
CIL has introduced a new marketing plan to substitute imported coal with more domestic supplies, the official said.
The Maharatna PSU has listed domestic coal-fired power plants and manufacturers of sponge iron, cement, fertilisers, steel and others importing coal as potential customers.
These segments of customers had imported about 150 million tons of coal during the last fiscal cycle, he said.
Indian buyers, including traders who imported coal at any time in the current fiscal year or in the previous two financial years, are entitled to participate in this new e-purchase version.
“The minimum bid quantity shall be set at 25.000 ton for a source in the case of road mode transport. It shall be set at 50.000 ton for rail mode transport, which is equal to 12 rakes,” the miner said in a statement.
Customers may apply for additional incremental quantities of coal if required, the official said , adding that the mining company will start the e-auction under the new scheme from August 2020.
The coal behemoth will unveil the e-auction schedule of the scheme until March 2021.
The service providers would be MSTC Ltd and Mjunction Services Ltd, the official added, for the new scheme.
