Yesterday, Piyush Goyal, Minister for power and coal has ordered Coal India Ltd to reduce the quantity of coal sold through e-auction to improve firm supplies to power plants limping along on low fuel stocks.
Coal India now sells about 7% of its production through e-auctions, which fetches a price higher than fuel sold under pacts with power plants. Very few power producers tap the e-market due to the price difference and a cap on their tariffs. Smaller consumers in other industries and traders will benefit from this mode.
The decision comes as a representation power generating companies meeting ministers on issues regarding shortage of fuel and uncertainty involved over their investments to policy barries.
