By IANS,
New Delhi : Power producers hit by a fuel crunch will be able to get some portion of coal which state-run Coal India sells through the e-auction route, Power Secretary Uma Shankar said Wednesday.
“The coal secretary has told us that the coal ministry will be able to spare some of the coal that would be sold through e-auctions, provided the developer picks up the coal from the pithead,” Shankar told reporters here.
Coal India, the largest coal miner in the country, sells about 10 percent of its total output through the e-auction route. It is, however, not clear how much coal will be diverted to power producers.
Heavy rains in coal producing areas and a two-day strike by workers of Coal India have compounded the problems of many power plants across the country.
Shortage in fuel supplies have resulted in many power producers including the country’s largest thermal electricity generator NTPC reporting fall in output.
“We welcome this first step from the government. This will help mitigate the immediate coal crisis,” said Ashok Khurana, director general, Association of Power Producers.
Power producers, however, will be buying coal at higher rates through the e-auction route as these are sold at market rates, which are typically higher than prices arrived at by long-term agreements.