(ET)
Coal India’s board has empowered subsidiaries to fix their own floor prices for e-auctions, which is expected to help the monopoly get higher rates. Earlier, it had fixed a ceiling for floor prices. It was 20% for non-power consumers and 10% for power. “Subsidiaries have also been empowered to fix the periodicity of these e-auctions depending on market forces,” a senior Coal India executive told.
Western Coalfields, a subsidiary, has been empowered to fix its reserve price on the basis of the cost of production of coal. Many of its mines are underground and have higher costs compared to other mines.
Coal India has told its consumers that the upper cap is being removed immediately.
