E-auctions fetch Rs4,929 crore more for Coal India
19 Mar 2012
Coal sales through e-auctions of around 10 per cent of its total production have brought units of state-owned Coal India Ltd (CIL) an additional Rs4,929 crore revenue in the first 11 months of the current financial year (April-February 2011-12) when compared with receipts from sale based on notified prices.
''Coal India Ltd is earning some profits by sale of coal through e-auction. The subsidiary companies of CIL have earned an additional amount of Rs4,929.29 crore over the notified price, during the period April 2011 to February 2012,'' minister of state for coal Pratik Prakashbapu Patil said in a written reply in the Rajya Sabha today.
CIL units sell around 10 per cent of the total coal produced through e-auction. The fuel is sold at spot market rates under the e-auction, as against sales based on previously fixed or notified prices.
CIL sold coal at an average minimum and maximum prices varying from Rs2,611.26 per tonne and Rs2,933.90 per tonne between April 2011 and February 2012, against its average notified price of Rs1,647.38 per tonne, he said.
CIL, however, outsources nearly half of its annual production of over 430 million tonne. Under the notified price, CIL cannot pass on the service tax to its consumers.
The increase in service tax burden, estimated at approximately Rs100 crore, at the current level of production, will, however, be more than offset by gains through e-auctions.