Coal India to auction linkages for cement, steel sectors
New Delhi: To ensure dry fuel supply to non-regulated sectors like steel and cement, Coal India (CIL) on Monday announced auction of linkages.
“CIL announces auction of coal linkages (tranche III) for non-regulated sector,” Coal India said in a BSE filing.
The Union cabinet in February 2016 had approved auction of linkages for non-regulated sectors such as steel and cement.
“The cabinet committee on economic affairs, chaired by Prime Minister Narendra Modi, has given its approval that all allocations of linkages/letter of assurance (LoAs) for non-regulated sector viz cement, steel/sponge iron, aluminium and others [excluding fertiliser (urea) sector], including their CPPs, shall henceforth be auction based,” the government had said.
The coal ministry, earlier in a letter to CIL and Singareni Collieries Company Ltd (SCCL), has issued broad guidelines for methodology for auction of coal linkages to non-regulated sector and said that if bids are received for quantity greater than ‘link quantity’ offered, then the premium is increased in steps.
“Auction stops when bids are received for exact quantity i.e. ‘link quantity’ offered. Each successful bidder pays the same price,” it has said.
Maximum bid quantity by a particular bidder shall not exceed the normative requirement of the end-use plant, the ministry has said, adding that for auction of linkages, CIL/SCCL shall chalk out annual or six-monthly auction calendar.
The government had earlier said that it is likely to put on offer 14.5 million tonnes of fuel.
CIL had earlier auctioned around 22 million tonnes of fuel linkages for the non-regulated sector.
- Satyam case: Price Waterhouse moves SAT against Sebi order
- India a favourable market for fashion retailers, says report
- Direct tax mop-up jumps 19% to Rs6.89 trillion this fiscal
- TCS on client win spree, expands pact with US acoustic company Shure
- Benjamin Netanyahu says US embassy could move to Jerusalem within a year