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Lok Sabha
The Government had approved, in principle, sale of coal to non-core sector through e-auction in internet on trial basis following High Court of Kolkata order dated May 13, 2004 setting aside the existing policy on sale of coal to non-core sector consumers based on linkages and sponsorship. The e-auction trials are being concurrently evaluated by Indian Institute of Management, Kolkata and final view is to be taken depending on experience of these trials. In 2004-05, Coal India Limited sold 10.5 lakh tonnes coal through e-auction. During the year 2004-06 upto June, it has sold 27.38 lakh tonnes.
The coal companies are working to bring in more transparency and accessibility of coal to non-core consumers through the e-auction trials. Consumers' awareness about these e-auction trials had been effected through wide press publicity and road shows in different cities.
Prices of coal sold through e-auction reflects market dynamics. Coal companies have, however, been cautioned about working out the average weighted price only after the quantity has been booked and not immediately after the bids are finalized to avoid misleading trends. E-auction mechanism further allows any consumer to access desired quantity of required grade of coal from source of own choice.
This information was given by the Minister of State for Coal, Dr. Dasari Narayana Rao, in a written reply in the Lok Sabha today.
DS/SCH
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