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Friday, June 13, 2008

Coal India offers more coal through e-auction

Press Trust of India / Kolkata June 12, 2008, 10:43 IST

In an effort to increase supply in the market, Coal India (CIL) has decided to sell 15 million tonnes of coal through e-auction this month and reduce the premium to enable consumers to lift more coal.

"CIL will offer 15 MT coal through e-auction in June. Our intention is to see that prices go down. CIL has reduced premium to 5 per cent on the notified price from the 30 per cent charged last month," Santosh Bagrodia, the Minister of State for Coal, told reporters here last night after a review meeting at the CIL headquarter.

CIL Chairman Partha Sarathi Bhattacharyya said that in May the reserve price of coal sold through e-auction was 30 per cent more than the notified price. Now it has been reduced to 5 per cent and the price was closer to the notified price.

He said 11.5 MT of coal was offered through e-auction in May and the offtake was 5.3 MT.

Asked why the offtake was less, Bhattacharyya said that it was difficult to read market behaviour.

Bagrodia said that there was no shortage of coal at the pithead. However, there was some problem of transport as enough rail wagons were not available. Apart from this, road transport and law and order problem sometime affected coal supply, he said.

Bagrodia also reiterated that Coal India would not increase the coal price this year and maintain the priceline.

Source: Business Standard

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