Coal India will supply 4.65 million tonnes of coal a year for the cement industry for five years through e-auctions starting, a senior Coal India executive said.

It had recently offered 7 million tonnes to sponge iron firms, and received bids that were 39% higher than the notified price for the non-power sector.

The company hopes to garner similar premiums from cement producers as the sector faces a shortfall as coal was diverted to fuel-starved power plants.

According to the Coal India executive, of the 4.65 million tonnes on offer annually, 1.14 million tonnes can be procured each year through the railways, while the rest 3.51 mt would be supplied through roadways.

Coal India subsidiary South Eastern Coalfields will offer the highest quantity for the auction at 3.25 million tonnes per annum, of which 1 million tonnes would be through the railways and the rest 2.25 million tonnes through roadways every year for the contract period. This subsidiary is offering almost 70% of the total coal on offer in the auction by subsidiaries participating in the auction.

Western Coalfields’ plan includes offering 7.96 lakh tonnes annually, all of which would be through roadways followed by Central Coalfields and Northern Coalfields each offering 2 lakh tonnes annually through roadways only. Western Coalfields would be offering 17% of the total coal.

Mahanadi Coalfields, however, has firmed up plans to offer 90,000 tonnes annually through the railways and an additional 49,500 tonnes through roadways each year, totalling 1.39 lakh tonnes every year.

Eastern Coalfields’ plan involves offering 50,000 tonnes annually through the railways and an additional 20,000 tonnes through roadways every year, totalling 70,000 tonnes. Bharat Coking Coal and North Eastern Coalfields will not be participating in this auction since they are not offering any coal to the segment.

Auctions would be held for 11days in a row through 32 separate auctions and on offer are 11 grades of coal from G3 to G13.