State-run CIL arm Western Coalfields Ltd (WCL) today announced the reduction of its e-auction coal price by 20 per cent of the rate notified.
"In a move to provide comfort to its customers, Coal India Limited has approved reduction in e-auction coal prices of Western Coalfields Limited (WCL) by 20 per cent of notified price," WCL said in a statement.
This substantial reduction will be a boon for consumers of Maharashtra and other neighbouring states which were earlier taking coal from other coal companies due to higher price of WCL coal, the statement said, adding these consumers would be able to meet their demand of coal from WCL itself in near future.
The notified coal price of WCL has been 20 per cent higher in comparison to other coal companies due to its adverse geo-mining condition.
E-auction of coal is done by fixing the reserve price by further adding 20 per cent over notified price. This 20 per cent addition was making WCL coal costlier, forcing consumers to take cheaper option from other sources, it said.
"The matter was reviewed recently both at WCL and CIL level and a decision has been taken to do away with the add on over WCL notified price for fixing the reserve price for E-auction," it said.
This has been implemented with immediate effect and consumers will benefit from the very next round of e-auction scheduled for May 24.
This benefit will be for both forward and spot e-auction customers.
"However, the reduction in coal prices would be 10 per cent of notified price in case of special forward E-auction for power consumers, including captive power plant, and... forward E-auction for non power consumers (including CPP)," it said.
WCL recorded a highest ever growth of about 9 per cent in coal production during 2015-16.
The company produced 44.8 million tonnes (MT) of coal during the period and is heading for a target of producing 60 MT by 2019-20. In order to increase and sustain production, WCL has created record by opening 15 new/replacement projects till now.