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CIL Defers Various e-Auctions Due to COVID-19

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Coking

BigMint Bureau

821 Reads

27 Mar 2020, 17:00 IST

CIL Defers Various e-Auctions Due to COVID-19

Various e-auctions conducted by Coal India Limited (CIL) have been postponed for a minimum period of 14 days due to the corona virus outbreak in India. The decision was taken in view of the nation-wide lockdown announced by Prime Minister Shri Narendra Modi.

CIL's largest coal producing subsidiary-SECL has notified that both of its special forward e-auction and spot e-auction were extended until 20th April 2020.

The spot auction scheduled on 31 Mar'20 was intended for sale of coke/coal fines generated from the collieries of ECL and SECL. While the fourth phase of Special forward auction for sale of 978,000 MT coal was primarily envisaged for 30 Mar'20.

ECL has also put on a notice regarding extension of auction which was scheduled to be held towards the end of Mar'20, where a total of 1.6 MnT was offered for sale on 27 Mar'20. In similar lines, CCL has deferred the spot and special forward e-auction that were scheduled for 28 and 30 Mar'20.

Officials have stated that some subsidiaries had already concluded e-auction before the lockdown announced while others were waiting for the next advisory from Government. The deferment of coal sales via e-auction was also affected by the absence of service provider.

Notably, MSTC an e-commerce company carrying out the auction process on behalf of these subsidiaries, has informed about its inability to process these sales amid lockdown, while the other trading house Mjunction has also notified non-operation on similar grounds.

The Covid-19 outbreak had put a halt only for the coal sales, but CIL's production is still going on in full swing with curtail of minimum manpower. Till 23rd Mar'20, CIL production has reached 575.91 MnT exceeding its year-to-date off-take figures of 568.95 MnT.

The current financial year has been a major setback for CIL which has fallen wayward from its MOU target, however, its output started a path of healthy recovery from October 2019 onward after a prolonged and severe monsoon impeded its production tempo.