Under pressure to meet the ongoing shortage in coal supply committed for the power sector, the coal ministry on Thursday agreed to set aside a portion of coal earmarked for spot sales for supply to long-term power consumers.
While the decision would be in effect for a month, it would help ease the current shortage temporarily. The government sells around four million tonnes (mt) of coal — 10 per cent of what it produces — every month through spot sales at e-auction. “Some part of this four mt will be sold to public sector undertakings (PSUs) in the power sector at notified prices to meet the shortages in fuel supply agreements (FSAs) signed with them. This is only a temporary relief measure and would end when the shortages subside,” a senior official from the coal ministry told Business Standard.
Coal ministry to allot a part of spot sales to power plants
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