Coal distribution through E-Auction was re-introduced in the New Coal Distribution Policy in 2007 mainly to provide access to companies that do not have regular sources of supply. Coal India Ltd is the world’s largest producer of coal, sells 10 percent of its output through e-auction. The miner produces more than 80 per cent of the country’s coal.
There are two types of e-auction conducted for sale of coal i.e. through Spot e-auction and Forward e-auction.
Through “Spot e-auction” most of the coal is purchased by big traders, who in turn, sell the coal to the consumers with huge profit margins in addition to the bidding price which is about 65% higher of the notified price.
“Forward e-auction” provides equal opportunity to all coal consumers to purchase coal for own consumption at a price determined by them through the process of online bidding. However, at present the forward e-auction constitutes only 2-6% of the quantity sold through e-auction.
The purpose of forward e-auction is to provide equal opportunities to all intending coal consumers to purchase the fuel for own consumption through single window service as per requirement and at a price determined by them through the process of on-line bidding.
Terms and conditions of Spot e-auction Scheme & Forward eauction Scheme both updated as on 23.03.2015 is being uploaded for information.