No plan to stop e-auction of coal : CIL

Posted By: Staff
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No plan to stop e-auction of coal : CIL
Sriprakash Jaiswal, Coal minister denied any kind of restrictions on the e-auctioning of coal. The minister further added that the e-auctioning coal began only after the process was approved by the Supreme Court. He also mentioned that any hindrance in the e-auctioning would further increase the huge pithead stock, resulting in a trouble.

E-auctioning provides a platform that enables around 80%-90% of coal sale. Thus, eventually it has proved itself to ne the major revenue earner.

Currently, as per the statistics, there is an estimate of about 70 million tonne of stock lying at the pitheads. The accumulation is taking place due to the shortage of rakes. According to the CIL, the problem is likely to decrease in case some acquitision of rake takes place.

"If e-auction is stopped then another 10% stock will accumulate," Jaiswal said last night on the sidelines of celebrations of CIL's Maharatna status. In order to tackle the issue, Jaiswal mentioned his approach to Railway asking the industry to finance the cost of rakes to be used while transporting the coal solely.

"We have proposed to finance rail rakes. The Coal sector cannot participate in the own-your wagon scheme, but Railways has assured to look into the possibility of amending the rule," Jaiswal said. He further added, "The number of rakes have improved recently, but it is not enough to clear stocks".

Read more about: cil, coal, bse, nse
Story first published: Wednesday, May 25, 2011, 9:30 [IST]
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