Power producers participating in Shakti, the auction for long term coal supply contracts, offered to reduce their power supply tariffs by 4 paise per unit on the higher side and 1 paise per unit on the lower side.
Some 27 million tonnes of coal was allocated and it would fetch Coal India an additional income of Rs 2,500 crore every year. Following this discounts, power consumers are expected save Rs 125 crore every year for the next 25 years.
At the second day of auctions, for Shakti, which ended on Tuesday around 11.30 pm, power producers were asked to bid on the discounts they are to offer to receive allocation of coal from Coal India. Coal India offered around 27 million tonnes.
Coal India received bids for discounts of 4 paise per unit on existing tariffs of power producers for 22% of the coal on offer which amounted to 6 million tonnes a year. Read More…