In April-June this fiscal year, CIL ‘s coal allocation under the spot e-auction scheme recorded a 7.1 percent decline to 6.89 million tons following a slump in fuel demand due to COVID-19 lockdown. According to government data, Coal India Ltd (CIL) had allocated 7.42 million tonnes (MT) of coal during the year-ago period.
However, the PSU allocated coal in June increased to 3.68 MT, compared to 2.07 MT in the preceding 2019-20 month, it said.
As per the information available on CIL website, Coal distribution through e-auction was introduced with a view to provide access to coal for such buyers who are not able to source the dry fuel through the available institutional mechanism.
The aim of the e-auction is to provide fair opportunity through a single window service to all purchasers wanting to purchase coal.
Coal India produces more than 80 per cent of domestic coal output. In 2019-2020, CIL’s allocation of coal under the spot e-auction scheme had declined to 29.83 MT, over 34.34 MT in 2018-19.
CIL, which is already reeling under pandemic stress-causing adverse repercussions on demand and dry fuel supply, had said last month that the situation would remain uncertain in July-September as some states resort to fresh lockdowns.
Coal output is still affected in some of the major mines because of high coal stocks and less offtake, the PSU had said. CIL’s pithead stock as on July 16 was 72.88 MT compared with 33.17 MT over the same period last year, it had said.
Because of the government’s ongoing lockdown and various directives of the state government, normalcy has not yet been restored, impacting coal production and despatch, Coal India had said.
