Indian coal firms to liquidate 25 percent

NEW DELHI, May 22 (UPI) -- India's state-run coal firms are planning to liquidate 25 percent of their holdings in May, Coal Minister Santosh Bagrodia said.

The minister said the government-controlled coal companies, saddled with an inventory of 47 million tons, have planned additional efforts to liquidate 25 percent of their holdings, besides sharply increasing the monthly quantity sold under e-auction from 3 million tons on average to 15 million tons in May.

Speaking to journalists, Bagrodia said any claim of shortage was because of the failure of power plants to maintain the mandatory 21-day inventory. He said 27 power units were in a critical state as their stock condition is declining.

"The Power Ministry claim that there is a 40 million ton shortage, but we have 40 million tons stock, where is the shortage? There is enough supply, but everybody wants us to hold the inventory," he said.

The demand was for 450 million tons, of which 50 million tons were for coking coal, which was not available. On imports, he said 50 percent was coking coal and the rest was to meet emergency needs of the units themselves, besides the import of special quality coal.

Bagrodia also assured that there would be no hike in coal prices this year. Between April 2007 and May 2008, domestic coal prices increased 35 percent.