India to e-auction 15 million tons of coal

NEW DELHI, June 12 (UPI) -- State-run Coal India Ltd. said it would sell 15 million tons of coal through e-auction and reduce the premium.

The company said the move is part of an effort to increase supply in the market. The CIL has decided to sell 15 million tons of coal through e-auction this month and reduce the premium to enable consumers to lift more coal, said Partha Sarthi Bhattacharyya, chairman of the company.

Coal Minister Santosh Bagrodia, who presided over a review meeting at CIL headquarters, said the company would offer 15 million tons of coal through e-auction in June. He said the idea is to see that prices come down. The coal major has reduced premium to 5 percent on the notified price from the 30 percent charged last month, Bagrodia told newsmen.

The chairman of CIL said in May the reserve price of coal sold through e-auction was 30 percent more than the notified price. Now, it has been reduced to 5 percent, and the price was closer to the notified price. He said 11.5 million tons of coal was offered through e-auction in May.

Bagrodia said there was no shortage of coal at the pit-head, adding there was some problem of transport as enough rail wagons were not available, however. Besides, road transport and law and order problem also affected the coal supply, he said. Bagrodia also said Coal India would maintain the price line and coal prices would not be raised this year.