About Allocation of Coal blocks and Coal linkages

1. At present CIL conducts  auction fr7 sub-sectors under NRS Linkage Auction Policy as under:  nkage auction policy dated 15.02.2016 of Ministry of Coal (MoC). The Policy provides that all the coal linkages are auction based and coal quantities for the auctions are earmarked for the various sub-sectors of NRS viz. Sponge-Iron, Cement, Steel (Coking), Captive Power Production, Others etc,.  

  The main features of the NRS linkage auction policy are as under:

1. All the fresh coal linkages to the NRS [excluding fertilizer (urea)] are auction based.
2. Linkages are for specified end-uses only.
3. Only specified end-users to participate in the linkage auctions.
4. Separate quantities are earmarked for the sub- sectors of NRS.
5. Sub-sectors to compete within themselves.
6. Coal earmarked from area or mine within a subsidiary by CIL.
7. Initial floor price: Run-of-Mine (ROM) price plus premium above this price.
8. ROM price suitably indexed for subsequent years; bid premium remains constant over the contract period.
9. Maximum tenure of FSA -15 years (except for coking coal-30 years). 
10. FSAs with CPSEs executed prior to the NRS linkage auction policy shall continue to be renewed on expiry.
11. CPSEs requiring linkages over and above the erstwhile linkage quantity shall be required to participate in the NRS linkage auctions.
12. The detailed methodology for the conduct of auctions are worked out by CIL / SCCL. 

 In terms of NRS Linkage auction policy issued by MoC, CIL is conducting linkage auctions for providing long term linkages to various sector of Non-power sector consumers. 

In order to meet energy demand of country, preference is given to meet the coal demand from thermal power plants at the first place. CIL also endeavors to offer coal among the subsectors under NRS Linkage auction taking into consideration expiring (maturing) FSA quantity, Coal availability position and upto 25% of the incremental annual production. It is further to mention that earmarking of coal under different subsectors of NRS Linkage auction varies on the basis of coal availability scenario.

Auctions are conducted by CIL for various sub-sectors of NRS viz. Sponge Iron, Cement, CPP, Others and Steel (Coking). The subsectors other than Cement, Sponge Iron, Steel (Coking) and Captive Power Plants can participate in the Others window to procure coal.

At present CIL conducts  auction for 7 sub-sectors under NRS Linkage Auction Policy as under:  

Sponge Iron 

ii. Cement

iii. CPP

iv. Others

v. Steel (Coking)

vi. Production of Syngas Leading to Coal Gasification

vii. Steel using Coking coal through WDO route

Further, E-Auction window can also serve the requirement of any prospective consumer who may wish to source coal to meet its seasonal requirement wherein it can secure coal from any preferred source / mine considering cost-economics. 

1. At present CIL conducts  auction fr7 sub-sectors under NRS Linkage Auction Policy as under:  nkage auction policy dated 15.02.2016 of Ministry of Coal (MoC). The Policy provides that all the coal linkages are auction based and coal quantities for the auctions are earmarked for the various sub-sectors of NRS viz. Sponge-Iron, Cement, Steel (Coking), Captive Power Production, Others etc,.  

  The main features of the NRS linkage auction policy are as under:

1. All the fresh coal linkages to the NRS [excluding fertilizer (urea)] are auction based.
2. Linkages are for specified end-uses only.
3. Only specified end-users to participate in the linkage auctions.
4. Separate quantities are earmarked for the sub- sectors of NRS.
5. Sub-sectors to compete within themselves.
6. Coal earmarked from area or mine within a subsidiary by CIL.
7. Initial floor price: Run-of-Mine (ROM) price plus premium above this price.
8. ROM price suitably indexed for subsequent years; bid premium remains constant over the contract period.
9. Maximum tenure of FSA -15 years (except for coking coal-30 years). 
10. FSAs with CPSEs executed prior to the NRS linkage auction policy shall continue to be renewed on expiry.
11. CPSEs requiring linkages over and above the erstwhile linkage quantity shall be required to participate in the NRS linkage auctions.
12. The detailed methodology for the conduct of auctions are worked out by CIL / SCCL. 

 In terms of NRS Linkage auction policy issued by MoC, CIL is conducting linkage auctions for providing long term linkages to various sector of Non-power sector consumers. 

In order to meet energy demand of country, preference is given to meet the coal demand from thermal power plants at the first place. CIL also endeavors to offer coal among the subsectors under NRS Linkage auction taking into consideration expiring (maturing) FSA quantity, Coal availability position and upto 25% of the incremental annual production. It is further to mention that earmarking of coal under different subsectors of NRS Linkage auction varies on the basis of coal availability scenario.

Auctions are conducted by CIL for various sub-sectors of NRS viz. Sponge Iron, Cement, CPP, Others and Steel (Coking). The subsectors other than Cement, Sponge Iron, Steel (Coking) and Captive Power Plants can participate in the Others window to procure coal.

At present CIL conducts  auction for 7 sub-sectors under NRS Linkage Auction Policy as under:  

Sponge Iron 

ii. Cement

iii. CPP

iv. Others

v. Steel (Coking)

vi. Production of Syngas Leading to Coal Gasification

vii. Steel using Coking coal through WDO route

Further, E-Auction window can also serve the requirement of any prospective consumer who may wish to source coal to meet its seasonal requirement wherein it can secure coal from any preferred source / mine considering cost-economics. 

Government had approved in 2022 that all the non-linkage coal of the coal companies would be sold through one e-auction window. Thereafter, the coal companies are conducting e-auction under new Single Window Mode Agnostic (SWMA) E-auction Scheme. Coal supplied through the Single Window e-auctions serves all the sectors without any end use restrictions (for a short term). The modalities for the conducting of e-auctions are decided by the coal companies. SWMA e-auction policy was issued by Ministry of Coal vide letter dated 21.03.2022. In pursuance of the SWMA e-auction policy, the scheme namely ‘CIL e-auction Scheme 2022’ was developed by CIL and was implemented by CIL across coal companies from 01.03.2023.

E-auctions are being conducted by CIL through auction service providers. Presently two external service providers namely M-junction Services Ltd. and MSTC Ltd. are conducting the auctions. Besides, CIL has also developed in-house e-auction platform under the aegis of CMPDIL with NIC as technology partner. The in-house platform is presently under updation/modification.

Government had approved in 2022 that all the non-linkage coal of the coal companies would be sold through one e-auction window. Thereafter, the coal companies are conducting e-auction under new Single Window Mode Agnostic (SWMA) E-auction Scheme. Coal supplied through the Single Window e-auctions serves all the sectors without any end use restrictions (for a short term). The modalities for the conducting of e-auctions are decided by the coal companies. SWMA e-auction policy was issued by Ministry of Coal vide letter dated 21.03.2022. In pursuance of the SWMA e-auction policy, the scheme namely ‘CIL e-auction Scheme 2022’ was developed by CIL and was implemented by CIL across coal companies from 01.03.2023.

E-auctions are being conducted by CIL through auction service providers. Presently two external service providers namely M-junction Services Ltd. and MSTC Ltd. are conducting the auctions. Besides, CIL has also developed in-house e-auction platform under the aegis of CMPDIL with NIC as technology partner. The in-house platform is presently under updation / modification.