In a major policy decision, the Union Cabinet on Saturday decided to offer coal through single window e-auction.
Through the e-window, Coal India Limited and Singareni Collieries will offer coal to all sectors, including power sector and traders falling in the non-regulated sector, instead of the present system of sector specific auctions.
This will, however, be subject to not impacting the current linkages to power and non-power consumers at contractual prices.
Coal so offered is to be transported through the rail mode. However, coal may be lifted by consumers through the road mode or other modes depending upon their choice and suitability without paying any additional charges or discount to the coal companies.
Officials said the decision will remove the market distortions as all consumers will get coal at a single rate, leading to increase in the domestic coal demand and it will eliminate the coal companies' discretion of allocating coal to different end users.
It shall also increase operational efficiencies and lead to an increase in domestic coal demand. Clubbing of the e-auction windows would not involve any additional cost to the coal companies.
Further the coal companies shall be able to establish coal gasification plants by availing coal from their own mines. It shall help in developing clean coal technology.
Hence, with better availability of domestic coal with better price stability and predictability, the import of coal is expected to come sown drastically. This would reduce the dependence on imported coal and would be conducive to making of ‘Atmanirbhar Bharat’.
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