Coal India offers an exclusive online auction for coal importers

The official said that CIL adopted a new marketing strategy to replace imported coal with more domestic supplies.

Coal India Ltd (CIL) said on Friday that it has introduced a new category of importers' e-auction only and that it aims to replace 150 million tons of fuel (MT) from overseas with domestic supplies.

Coal acquired under the "2020 auction" scheme will be used to replace imports in the country.

A Coal India official said: "This measure is an attempt to gain government momentum to reduce dependence on the country's coal import under the Atma Nirbhar plan. 150 million tons of coal imports can be replaced by this new scheme."

The miner said that the new program is in addition to its existing four categories of online auctions.

The official said that CIL adopted a new marketing strategy to replace imported coal with more domestic supplies.

The power source in our skills has identified coal-based home power plants and sponge factories for iron, cement, fertilizer, steel, and other companies that import coal as potential customers.

He said that these customer sectors imported about 150 million tons of coal in the past fiscal year.

Indian buyers, including merchants who have imported coal at any time in the current fiscal year or the previous two fiscal years, are entitled to participate in this new version of the online auction.

The miner said in a statement, "The minimum bid amount is set at 25,000 tons for the source in the case of transportation by road. As for transportation by railway mode, it is 50 thousand tons, which is equivalent to 12 rakes." The official said customers could apply for more additional coal if needed, adding that the mining company would start the online auction under the new scheme that would start in August 2020.

The coal giant will unveil the online auction schedule for the plan through March 2021.

The official added that service providers would be MSTC Ltd and Mjunction Services Ltd for the new scheme.

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