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State-owned Coal India informed on Friday (June 5, 2026) that it would be putting on offer 35 million tonnes (MTs) of high gross-calorific value (GCV) under the linkage auction window to be held June 12.
The miner underlined the objective was to reduce the import of the high-GCV coal which is primarily consumed by the sponge iron sector.
Sponge iron manufacturing is by their very nature capital-intensive and volatility in prices of the imported coal and their freight – against the broader geopolitical backdrop – particularly have the potential to affect manufacturer margins.
The Kolkata-headquartered miner also stated that it has allowed steel (coking) sub-sectors to sell coal middling, which are power-grade coal and acquired as residual byproducts of washed raw coking coal – in a move that would further address the import dependency.
In the current tranche of auction, Coal India has offered 13.75 MT of coal to the steel sub-sector.
Along with this, it has allowed participants to change consortium partners over the duration of the linkage period up to five times – seeking to allow more flexibility adhering to their requirements.
Consumers of the non-regulated sectors – seeking to establish a greenfield or brownfield project – are allowed to secure coal linkages even as their projects are yet to be commissioned.
Catering to power sector requirements
Other than non-regulated sectors, Coal India also informed that it would be conducting the next round of short-term auction under the SHAKTI policy, that is, the policy framework for domestic coal linkages to the power sector, on June 8.
Around 34 MT of coal would be put up on the block.
Published – June 05, 2026 03:54 pm IST
