Coal India Ltd (CIL) will start auction of coal linkages for cement sector from June 28. According to reports the company is expected to auction 2.15 million tonne per annum of coal linkages for cement sector.
CIL has earlier conducted auction for coal linkages for the sponge iron sector.
The Cabinet Committee on Economic Affairs had in February decided that the allocation of coal linkages for the non-regulated sector will be done through an auction-based mechanism.
Subsequently, the ministry issued a letter to CIL for auction of coal-linkages for sectors like cement, sponge iron / steel, aluminium and others (excluding fertiliser, urea), through a competitive bidding process.
There was tepid demand for coal during the earlier auction which the officials attribute these to slowdown in cement and steel sectors.
State owned Coal India Limited (CIL) is the largest coal producer company in the world and contributes around 82 percent of the coal production in India.
