Coal News We love to talk!

MAY 30 2016

Auction of coal linkages for sponge iron sector on Tuesday

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 30th MAY 2016

Coal India will conduct the auction of coal linkages for the sponge iron sector on Tuesday -- the first sale of the dry fuel for non-regulated industries through bidding route. The Coal Ministry has directed CIL to conduct auction of coal linkages for the non-regulated sectors such as cement, steel/sponge iron and aluminium with a view to ensuring fuel availability to end users.

 Coal India last week said that the first sale of coal linkages would be conducted for the sponge iron sector. A source said that "the first phase of auction of coal linkages would be held on May 31, 2016 for sponge iron units".

 The source said that the PSU has also organised a pre-bid meeting with sponge iron consumers with regard to auction of linkages for the sector to explain different features of the auction process. CIL has decided to allocate a total quantity of around 23.25 million tonnes per annum (MTPA) in the first tranche of coal linkage auction, a source said.

 Auction of coal via linkage from Singareni Collieries Company Ltd will be done subsequently, the source added. "The phase I of tranche 1 would be for 'Sponge Iron' sub-sector. Total quantity of approximately 2 MTPA has been allocated for sponge iron sub-sector under Phase I," the source said.

 The government had earlier said that allocation of coal linkages for non-regulated sector industries will be only through the auction route to ensure transparency. Sectors included are cement, steel/sponge iron, aluminium, and others (excluding fertiliser, urea). The framework attempts to make coal available in a fair manner to end-users, Power Minister Piyush Goyal had earlier said.

Tags

TOTAL Coal Coal India Limited Singareni Collieries Company Ltd CIL Power coal linkages India

Related News

  • Pre-monsoon showers damage trees, property, hit power supply in Nagpur  Read more
  • The correlation between current account deficit and Brent crude prices  Read more
  • Hydro power producer NHPC explores options for interstate trading  Read more
  • Jana Shikshana Trust plans to set up solar units in anganwadis  Read more
  • Power deficit may reach 5.6 per cent by fiscal 2021-22: Study  Read more
  • NTPC aims to generate 268 BUs electricity in current fiscal  Read more
  • Solar power to make Noida Metro Indias greenest  Read more
  • Power: Not a charged up performance  Read more
  • Environment Ministry postpones forest policy indefinitely  Read more
  • Coal India likely to miss 2016-17 sales target unless power demand picks up  Read more