Power Ministry will soon approach the Cabinet to seek approval to the auction of coal linkages for the power sector, Union Minister Piyush Goyal said on Tuesday.
“We are shortly finalising the Cabinet note (on auction) and we will be going to the Cabinet in the very very near future,” the Coal and Power Minister told reporters here.
The minister further said that there is no shortage of coal in the country at present.
Earlier, the Cabinet Committee on Economic Affairs had approved allocation of coal linkages for non-regulated sector only through auction.
CIL had decided to allocate a total quantity of around 23.25 million tonnes per annum (MTPA) in the first tranche of coal linkage auction.
According to the reserve prices on the electronic auction platform, MSTC Ltd, Coal India could get more than ₹500 crore for auctioning the linkages.
The first tranche of auctions comes almost four months after the Cabinet cleared a decision to auction coal linkages for the non-regulated sectors of steel, cement and aluminium.
In the first tranche, between June 10 and June 16, only sponge iron manufacturers will be participating and these companies will be able to bid for 3.78 million tonne of coal linkages.
At the pre-bid conferences almost all the major sponge iron manufacturers in the country including Jindal Steel and Power Ltd, Essar Steel, and Monnet Ispat were present.