Coal allotment of CIL under e-auction for non-power sector reaches 6 MT in April-May

New Delhi: Coal India's fuel allocation under special e-auction scheme for non-power consumers like steel and cement has increased five-fold to 6.10 million tonnes (MT) in the last two months.



The state-owned company allocated 1.20 MT of coal to non-power consumers under the scheme in April-May 2019 as per the latest government data.

This increase among Coal India Limited (CIL) is to tap the non-power sector for its coal consumption in view of the reduction in demand for drought fuel.


As per the data, CIL had allocated 2.19 MT of coal last month, with no fuel allocated by PSU in May 2019.

For the entire financial year 2019-20, the coal allocation of PSUs under the scheme declined to 8.03 MT from 11.36 MT in the previous year.

The technique was undertaken in 2015-16 to make coal accessible to non-power consumers including accountable power plants.

CIL had earlier said that it is facing substantial demand for coal with most of its customers in the power sector, far from lifting sufficient quantities.


On Monday, PSU said that the power sector, which is near to 80 % of total coal supply of Coal India Limited along with around 50 MT of stock coal is sufficient for 29 days of consumption.

Many plants have begun to block further supplies from CIL, leading to a decline in coal production.



During May, the power sector picked up 30.15 metric tonnes of coal from CIL sources, down 25 per cent from 40.38 metric tonnes in the same month last year.

To find parkways for broadening its coal supply, Coal India Limited is focusing on non-power sector consumers like cement, steel companies, fertilizers, sponge iron industries, convincing them to replace their imported coal with domestic supplies.

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