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CIL arm WCL reduced coal auction prices by 10% for specific mines; The move will help consumers

Nagpur: A statement said that Western Coalfields Limited (WCL), a subsidiary of Coal India, has reduced the price of the floor of the coal auction of specific mines by 10 percent.

The low auction price for coal from ‘mine specific source’ will apply to all auctions by WCL in April 2020, with an effort to provide coal at a cheaper price to consumers during the current Kovid-19 epidemic.

“This will help both power and non-power consumers to get coal at lower prices,” it said.

 CIL arm WCL reduced coal auction prices by 10% for specific mines; The move will help consumers

Representative image. Reuters

WCL had identified 11 of its total 66 mines as ‘mine specific sources’ in November 2019, specifically for the use of power plants at an additional cost of Rs 450 per tonne over the notified price.

These 11 mines, including eight Greenfields, Dinesh, Makardhokra I, Gokul Bhanegaon, Singhori, Penganga, Yekona, Pauni II and 3 Brownfields – Mungoli, Nilzai and Gondegaon were opened during the last five years to provide electricity to coal. Consumers in Central, Western and Southern India at affordable prices at their home.

Earlier, these power plants were getting coal from mines located in eastern India, which was expensive due to additional railway freight.

With the inauguration of new projects by WCL, coal became cheaper at an average rate of Rs 1,000 per tonne for these plants.

WCL requested the power utilities to share this profit by adding Rs 450 per tonne to the notified price for these 11 specific mines, the statement said.

There was no change in pricing for the remaining 55 mines.

All the connected power plants of Maharashtra, Madhya Pradesh, Gujarat, Karnataka and other private sector power plants are getting coal from these 11 mines at specific prices.

“WCL has decided to reduce the price of special forward and spot e-auction floors of 11 specific mines by 10%,” it said.

The spot auction floor price will be 20 percent higher than the notified price instead of the current 30 percent, and the special forward floor price will be 8 percent higher than the notified price instead of the current 18 percent.

“This reduced price will be applicable only for the split forward and spot auction held during April’20. Earlier floor price will continue from the auction held from May’20”.

“WCL is thus providing its consumers a window of one month to get coal at a cheaper price. Lifting period of coal booked at cheaper price in both auctions to be held in April, 20 as per the existing policy and guidelines Hoagie. “Release of the company said.

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