Sub : Change in system of sale of coal

Coal India Limited has decided to sell coal through e-auction mode instead of the e-booking system.

The main features of the Spot e-Auction Scheme 2007 for sale of coal are listed below:

Ø      Only those customers registered with service provider (www.mstcecommerce.com ) as a buyer of coal shall be eligible to     participate in e-Auction of coal.

Ø      The e-Auction shall be open for a period of TWO hours only.
The rate of EMD per MT of coal irrespective of its grade/mode/size will be Rs. 500/- for Coal of Grade ‘E’ and above and Rs 400/- for Coal of Grade ‘F’ and below for all coal companies of Coal India Limited and Rs 200/- The Singareni Collieries Company Limited.

Ø      Minimum Bid quantity through road mode will be 50 MT and for rail mode it will be 1 Rake or as specified by respective coal companies. Bidding will be in multiples of 10MT in case of road and 1rake in case of rail unless specified by any coal company.

Ø      A bidder can bid for any quantity, up to the offered quantity from any particular source for auction provided he has submitted requisite EMD. There is no restriction on maximum quantity that one could bid.

Ø      For a given source, a customer can increase his bid any no. of times.

Ø      There will be RESERVE PRICE provided for each source put up for auction.

Ø      The bidder will have to quote a price equal to or above the reserve price to secure consideration in the concerned e-Auction.

Ø      Coal will be allotted to bidders on the basis of rate, quantity quoted and time of bid, in order of preference. However, only those offers which are equal to or higher than the Reserve Price for the source will be eligible for allocation.

Ø      If any bid is received during the last 5 minutes before scheduled close of auction for any source, its close time will get automatically extended by five minutes from the time of last bid in order to give all the bidders equal chance to revise their bid.

Ø      Bidding will close for a particular source either at the scheduled close time or till there will be period of 5 minutes in which no bid is recorded for the source, whichever happens later.

Ø      During an auction, for any source the L-1 Price at which coal has been allotted and the H-1 Price at that point in time will be displayed on the auction floor.

Ø      Minimum bid increment will be Rs.10/- during scheduled e-auction time. During auto-extension, minimum increment will be Rs.20/- per MT for a period of two hours in extension, beyond that it will be Rs.50/- per MT till the close of auction for the source.

Ø       The customers will be intimated about the allotment of coal through Sale Intimation Letter after the completion of the e-booking process. The status of their bidding will also be available under the link e-Auction Status in their Home page. It will be the responsibility of the bidder to check if any coal has been allotted to him.

Please read the Terms and Conditions provided for each e-Auction carefully before participating. For any further query or assistance regarding e-Auction contact any of us at the following telephone numbers:

                        033-2290-0964/extn.201 to 206, 033-2289-1401/5064

With Best Wishes

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MSTC e-Auction Team