The decision comes as a dozen power plants are staring at a bleak scenario for want of coal.
"Of a little over 50 mt of coal earmarked for the ongoing fiscal for the non-regulated sector, including sponge iron, cement and CPPs (captive power plants), Coal India (CIL) will auction linkages of around 25 million tonnes (mt) either in December or January," a senior government official said.
Last month, the government had started the auction of 27 mt of coal for the cement sector, which will be over by the end of this month, the official added.
The second instalment of the auction was held during January-June, when a total of 14.50 mt of non-coking coal and 0.26 mt of coking coal was booked.
Also Read
The Cabinet had last year approved coal supply through the auction route to non-regulated sectors.
The auction has been envisaged as a transparent mechanism of linkage allocation based on competitive bidding.
Disclaimer: No Business Standard Journalist was involved in creation of this content