State-owned Coal India Ltd (CIL) on Tuesday clarified that the supply of coal was prioritised to power sector in view of high demand and replenish its dwindling coal stock.
Amid stocks crunch at power plants, CIL had recently asked its subsidiaries to refrain from conducting any further e-auction of coal, except special forward e-auction for the power sector, till the situation stabilises.
Forward e-auction is aimed at facilitating all the consumers of coal across the country with wide-ranging choices for booking coal online, enabling them to buy the dry fuel through a simple, transparent and consumer-friendly system of marketing. CIL, one of the major coal suppliers to the power sector, accounts for over 80 per cent of domestic coal production.
“In view of the low stock position at the power house end due to spurt in economic activities post second wave of Covid-19, the supply of coal was prioritised to the power sector,” the company informed the exchanges.
CIL stated that the move was highly transitory measure to tide off the present high demand scenario in the power sector and normalcy will be restored very soon.
Owing to skyrocketing coal prices in global markets, all the consumers have been vying for domestic coal, hiking up the demand.
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