State-run Coal India Limited (CIL) has cancelled auction of coking coal supply linkages for steel companies, sources in ministry of coal said on Wednesday.
The coking coal supply linkage auction is scheduled to commence next week and though the sources does not elaborate on the reason, they claimed that it is not ‘cancellation’ but postponement until such time CIL framed new auction rules.
Under coal supply linkages, long term supply agreement for the period of five years was signed between CIL and highest bidder determined through the auction process.
Under the now cancelled or deferred linkage auction, CIL had put on offer supplies of 11.7 million mt of coking coal per year for period of five years, to highest bidders at the auction.