Coal India Eases Restrictions on Exports in Two Spot Auctions
- CIL restricted coal export in its previous policy
- The new policy permits foreign export spot e-auction and special spot e-auction outlets effective from June 8
- Prime development since the introduction of spot e-auction
New Delhi: Coal India Ltd (CIL) lifted the embargo on coal exports in two spot auctions to uplift and encourage more participation.
In a major policy shift on Friday, the Coal India allowed domestic purchasers to export coal bought through spot e-auction and special spot e-auction outlets effective from June 8.
The company modified its existing e-auction coal sale policy once the board agreed. The existing clause which restricted coal export has now been amended thereby permitting the export of dry fuel under two auction categories.
In a press statement, this is the first of its kind development since the introduction of spot e-auction in 2007, the company said.
Special e-auction encompasses all categories of domestic buyers including traders. The Special e-auction allowed the booked quantity of coal to be lifted over an extended time period.
Officials of the firm were elated with the development and predicted a rise in auction books henceforth. However, according to experts it is too premature to predict growth owing to the new amendment. The availability of coal on the spot e-auction platform would be debatable given the fact that there is very high demand for coal from the power sector.
It is to be noted that CIL has registered close to 53 per cent growth in auction bookings during the first two months of the current fiscal. The company also posted better price realisation from e-auction sales backed by an improved demand.
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