Coal India floats tender seeking bids from private players for e-auction

Despite having switched to its internal e-auction platform in January this year, Coal India Ltd (CIL) has floated a tender seeking bids from private service providers to conduct e-auctions of the dry fuel for its subsidiaries over the next two years, officials said on Monday.

This move has left external e-auction service providers, such as MSTC and mjunction, who have managed CIL's auctions through electronic platforms for nearly two decades, confused and they were seeking more clarity before deciding whether to participate in the tender, stakeholders said.

The deadline for submission of bids is November 27.

CIL had engaged its subsidiary CMPDI to develop an internal coal e-auction system in collaboration with the National Informatics Centre (NIC), the officials said.

 

The internal platform was successfully transitioned in January 2024 after conducting successful trials in 2023.

"However, there have been complaints about the system's performance, prompting Coal India to seek external platforms for its e-auctions," an official told PTI.

CIL's coal volume through the e-auction platform was estimated to reach around 60 million tonnes by September 2024.

"Engaging service providers to conduct e-auction is aimed at having more options at hand. CIL should be in a position to respond to changing market and consumer requirements," another Coal India official said.

The new engagement with external service providers is expected to begin in April next year after the current contracts with service providers expire in March, he said.

There is speculation within the industry regarding the future role of CIL's internal e-auction platform.

"We want to engage more firms to conduct coal auctions alongside our own platform to ensure smooth sales. The CMPDI platform will also continue to function, the senior CIL official said.

External service providers have expressed concerns about the new tender and are seeking clarity on the scope of work, especially given the CIL's reliance on its internal system.

We've sought greater clarity on the expected business in the tender, as our revenue depends on the number of auctions we conduct. Currently, most e-auctions are being handled internally by CIL. It remains unclear whether external providers will serve merely as a backup or whether there will be an assured revenue model. We have not yet decided whether to participate or not, said a top official from one of the two main service providers, requesting anonymity.