New Delhi Maharatna coal giant Coal India Limited (CIL) on Friday said it has taken steps to relax e-auction norms such as reducing collateral and increasing the quantity of dry fuel on offer.
The company also plans to modify its auction and allocation methodology as it aims to encourage greater participation.
"CIL has taken steps to relax norms in e-auctions such as reducing the earnest money deposit (EMD) and increasing the quantities offered under the auction hammer," the PSU said in a statement.
The coal giant has asked all its arms except Northern Coalfields Ltd to increase their e-auction bid amount to 40 per cent of their respective total output for the second and third quarters of this financial year.
At present, Coal India operates solely on an e-auction scheme independent of single window mode, where consumers can opt for their preferred mode of coal transportation.
"The company is also planning a modernization of its auction and allocation methodology under its electronic window," the statement said.
A concept note has been distributed to solicit feedback from e-auction bidders.
Among others, some of the changes contemplated are a three-hour auction window that replaces the previous long-running process; allow consumers to change their mode of transport from rail to road after a tender without additional premium; allowing a single bidder to submit a maximum of four bids for each basket, which was previously restricted to a single bid.
The move to reduce security deposit in e-auctions by more than a third, from Rs 500 per tonne of coal to Rs 150 per tonne, is aimed at encouraging greater participation. With more cash at their disposal, consumers could move to more auctions with the same capital.
Although the PSU is already supplying improved quantities of coal, as evidenced by its cargo, the company intends to step in to meet any latent demand as well. The average rake load was 316.7/day in the current fiscal year, with an increase of 40 rakes/day over the same period last year, he said.
Coal is generally supplied to consumers at notified prices. The reserve price in an e-auction is the price arrived at after adding a certain percentage to the notified coal price.
Now, the subsidiaries have been given flexibility to set their reserve prices taking into account different factors such as local supply and demand scenarios from different sources, optimize various modes of loading, particularly the road mode available with the coal company , coal stocks in the mine and the reserve level in the previous electronic auction.
Coal reserves in thermal power plants amount to almost 45 million tons, about 33 percent more than in the same period last year. CIL's intention is to supply coal to meet all domestic demand and also meet any latent demand that may exist in the system.
Coal India accounts for more than 80 percent of national coal production.
The company also plans to modify its auction and allocation methodology as it aims to encourage greater participation.
"CIL has taken steps to relax norms in e-auctions such as reducing the earnest money deposit (EMD) and increasing the quantities offered under the auction hammer," the PSU said in a statement.
The coal giant has asked all its arms except Northern Coalfields Ltd to increase their e-auction bid amount to 40 per cent of their respective total output for the second and third quarters of this financial year.
At present, Coal India operates solely on an e-auction scheme independent of single window mode, where consumers can opt for their preferred mode of coal transportation.
"The company is also planning a modernization of its auction and allocation methodology under its electronic window," the statement said.
A concept note has been distributed to solicit feedback from e-auction bidders.
Among others, some of the changes contemplated are a three-hour auction window that replaces the previous long-running process; allow consumers to change their mode of transport from rail to road after a tender without additional premium; allowing a single bidder to submit a maximum of four bids for each basket, which was previously restricted to a single bid.
The move to reduce security deposit in e-auctions by more than a third, from Rs 500 per tonne of coal to Rs 150 per tonne, is aimed at encouraging greater participation. With more cash at their disposal, consumers could move to more auctions with the same capital.
Although the PSU is already supplying improved quantities of coal, as evidenced by its cargo, the company intends to step in to meet any latent demand as well. The average rake load was 316.7/day in the current fiscal year, with an increase of 40 rakes/day over the same period last year, he said.
Coal is generally supplied to consumers at notified prices. The reserve price in an e-auction is the price arrived at after adding a certain percentage to the notified coal price.
Now, the subsidiaries have been given flexibility to set their reserve prices taking into account different factors such as local supply and demand scenarios from different sources, optimize various modes of loading, particularly the road mode available with the coal company , coal stocks in the mine and the reserve level in the previous electronic auction.
Coal reserves in thermal power plants amount to almost 45 million tons, about 33 percent more than in the same period last year. CIL's intention is to supply coal to meet all domestic demand and also meet any latent demand that may exist in the system.
Coal India accounts for more than 80 percent of national coal production.
