More trouble for Coal India

Mumbai : In the last two weeks, shareholders of Coal India Ltd (CIL) have had to grapple with negative news — first it was when the Cabinet cleared the draft Mining Bill, where companies would have to share 26 per cent profits with locals; then it was the workers’ strike; and now the possible diversion of spot market or e-auction sale of coal to the power sector.

The coal ministry is said to have agreed to the power ministry’s demand to divert a part of the coal currently being sold through e-auction to the power sector. This could come as setback for Coal India, which produced 431 million tonnes of coal last year. Of the total produce, 10-12 per cent has to be sold through the e-auction route.