Coal e-auction may crop up at review meeting with PM

In the proposed high level review meeting with Prime Minister Manmohan Singh on June 7 on coal shortage, the issue of e-auction of coal was likely to come up and the ministry would give their explanation to keep it going.

"Though, the subject of e-auction of coal is not on the agenda, it is likely to come at the meeting as the power ministry wants this to stop to increase coal supply to power plants," Coal Ministry Special Secretary Alok Perti told PTI.

Asked what would be the impact on Coal India in case e-auction was halted, Perti said, "its just not feasible".

CIL in FY11 had earned a profit of Rs 4,400 crore over and above the notified price of coal from e-auction. The company had earned a total net profit of Rs 10,867 crore for the year FY11.

That means CIL's financials will come under severe pressure if e-auction is stopped.

The high-level meeting, to be chaired by Manmohan Singh, would be attended by ministers in charge of coal, environment, power and finance.

The meeting was expected to come up with solution to increase coal production to meet the shortage in the power sector.

Union Coal Minister Sriprakash Jaiswal earlier spoke in favour of continuation of e-auction and said: "Sale through this route helps us to clear 10% of CIL's coal production".

"E-auction coal is lifted and transported by the buyers themselves through road transport. If this [e-auction] is halted there will accumulation of coal at pithead which is already 70.5 million tonne due to scarcity of rakes," he had said.