Kolkata, Apr 4 (PTI) Crisil has been engaged as consultant for the proposed coal trading platform announced by the government and the exchange may take shape in the next 6-9 months, a senior government official said on Monday.
The official said it will take forward the concept of forming the exchange for trading coal mined from private commercial entities, as this will increase fuel offering in the market.
“We want to create a robust platform for private coal mining companies to sell coal on a good marketplace where buyers and sellers can meet. We are in the process of creating a platform in the next 6-9 months. It will have a regulatory oversight like the gas trading platform,” coal secretary A K Jain said.
Addressing the inaugural session of the 9th Asian Mining Congress, he said Crisil has been appointed as the project consultant. After it submits its report, finer details will be worked out.
The government will float a tender to select operators for the exchange, Jain said.
Jain expects coal output from captive miners will increase considerably.
Out of the 777 million tonne of coal output in the country, 90 million tonne comes from captive sources and the rest from Coal India Ltd.
Jain said the Fuel Supply Agreement, a long-term pact between fuel companies and power plants, will not get impacted by the new coal exchange.
Australia Trade and Investment Commission Counsellor (commercial) Tim White said the Economic Cooperation and Trade Agreement (ECTA) covers coal and the pact will help boost trade in the commodity including coking coal which is in great demand from India.
India and Australia inked the ECTA on Saturday, under which Canberra will provide duty-free access in its market for over 95 per cent tariff lines, including textiles, leather, furniture, jewellery, machinery and select medical devices. PTI BSM NN NN
