New Delhi: In a major policy shift, Coal India Limited (CIL) has lifted the embargo on coal exports and paved the way for domestic coal purchasers, including traders, to export coal procured under two categories of e-auction schemes. The state-run coal miner tweaked its e-auction coal sale policy this week and received approval from its Board of Directors. Coal purchasers can now import coal procured through spot e-auction and special spot e-auction outlets. This is a first-of-its-kind development since the introduction of spot e-auction in 2007.
The existing clause 'coal procured under e-auction is for use within the country and not for export' has now been amended, opening the door for export of the dry fuel in two auction categories, Coal India said in an official statement released on Friday.
"Though Coal India would not be directly exporting coal, allowing those who procure coal under the two auction windows to export may prove to be catalytic to our sales. If there is favourable response outside the country, then we may witness more active participation as spot e-auctions book high volumes," said a senior official of the company.
In case of export the requirement of complying with the government rules all statutory guidelines, regulations and legal obligations shall lie solely with the coal buyer and exporter, said Coal India.
Allocation under spot e-auction and special spot e-auction together accounted for 46 Million Tonnes (MTs) of coal in FY21, which was 37 percent of the total allocated quantity of 124 MTs during the year. Spot e-auction at 42.5 MTs was the highest allocated quantity under all the five auction windows in FY21, fetching 25 percent add-on over the notified price, again the highest. Special spot e-auction netted a premium of 13 percent over the notified price.
Spot e-auction is meant for all categories of Indian coal buyers, including traders. Special spot e-auction, introduced in 2016, is similar in every way but the booked quantity of coal could be lifted over an extended time period.
"We feel upbeat about this development and hopefully witness an upsurge in auction bookings under the two schemes," said the executive.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)