10 mn tons of coal sold through e-marketing in Apr-Dec 2005

New Delhi, May 27 (UNI) A total of 10.212 million tonnes of coal was allocated to 10,525 bidders through e-marketing during April-December 2005, according to an official report.

Going by the latest figures available, the bidding process attracted 17,403 applicants for 11.967 million tonnes of coal offered. While the notified price of the coal was at Rs 1042.6 crore, the bid price was higher by 54 per cent at Rs 1607.9 crore -- up by 27.9 per cent over the floor price.

Trial e-marketing has been introduced in order to bring about transparency in the coal sales. Simultaneously, it aims to root out the evil of black marketing and cornering by unscrupulous traders and bogus industries. The premium thus raised will be channelised to coal companies enhancing their profits.

Based on the experience gained in the process, a coal sales policy will be evolved, the Annual Report 2005-2006 of the Union Coal Ministry says.

The trial e-marketing was introduced on the orders of Calcutta High Court which had directed that coal should be sold through the Open Sales Scheme while setting aside the system of coal supplies to non-core sector consumers based on distinction of linkages and sponsorships.

Initially, two trials of e-marketing were conducted by the Metal Scrap and Trading Corporation (MSTC) in Bharat Coking Company Ltd between December 2004 and March 2005 and another two in North Eastern Coalfields in March 2005. The Indian Institute of Management, Kolkata, was asked to evaluate the outcome of these e-marketings.

A sale of 10 million tonnes of coal by Coal India Ltd (CIL) was approved by the Government through e-marketing on a trial basis during 2005-06 with a review to be undertaken of the scheme. CIL held e-marketing in all of its eight subsidiaries.

Subsequently, another 10 million tonnes of coal was approved by the government for e-marketing during 2005-06 following the encouraging results.

The report says that M/s National Cooperative Consumers' Federation of India (NCCF), an apex body under the Consumer Affairs and Public Distribution Ministry, which is distributing coal to SSI and tiny units is to be supplied coal by the subsidiary companies of CIL at the floor price, (that is, 20 per cent above the notified price of a particular grade) instead of the weighted average e-marketing price.

The state governments have also allocated three million tonnes per annum to distribute the coal among their respective consumers at the price applicable to the NCCF, the Report adds.

UNI SD PV RAI1929