The non-regulated (non-power) sector is now procuring coal at much cheaper rates than last year, as the premium on e-auction of coal for the non-regulated sector is down to 50 percent, compared to 350 percent last year. Facing no shortage of coal for the power or non-power sector, the Coal Ministry removed the provision which gave priority to the power sector in the procurement of coal.

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Pointing to a 30 percent growth in coal supply compared to last year to the non-regulated sector, Coal Secretary Amrit Lal Meena told CNBC-TV18 that the government is in regular consultation with the sector to remain abreast of its needs.

With 32.96 MT of coal available at pitheads, Meena said that the current stock is 21 percent more than the stock available on the same day last year, while Coal India's current stocks are 52.13 MT, 44 percent more than last year. He said that there hasn't been any major supply disruption during the ongoing monsoon so far, as an average stock for over 15 days is available at thermal power plants.

The Secretary added that the proposal for a viability gap funding (VGF) of Rs 6,000 crores for coal gasification is currently awaiting cabinet approval, and the ministry will issue an expression of interest (EOI) within three weeks of the impending nod. He indicated that the coal sector has shown a good interest in the proposed move so far.

Also Read:Why 32 blocks didn't receive bids in commercial coal auctions

First Published:Aug 1, 2023 3:29 PM IST