The demonetisation has actually benifitted the coal trade in country, said Chairman cum Managing Director of Coal India Limited, Sutirtha Bhatacharya.
Bhattacharya, who was one of the guest speakers at Global Mining Summit (GMS) and International Mining and Machinery Exhibition (IMME), said most of the coal trades are being done via e-auction, which is an online business.
So, demonetisation could not create any mess there. But on the other hand, the demonetisation actually benefitted the coal trade as the illegal traders are now facing immense problem to run their businesses.
“Illegal coal traders will be affected and legal coal traders will be happy,” Bhattacharya said.
However, Coal India Limited will spend a considerable amount on bringing up technologies in the coal sector, Bhattacharya added.
The authority believes this would not lead an increase of expenditure, but will pave the way for smooth trade.
“We’ve fix the CAPEX of Rs 8000 crore and land and technology related issues. Technology will be used to bring ecology friendly, safe, human recourse friendly and good quality coal trade,” Bhattacharya added.
Coal India Limited recently sold 7 million tonnes of coal, or 35% of the quantity on offer in an e-auction, at a floor price that was 20% higher than listed prices for non-power users.
Traders as well as power producers with or without supply commitments from Coal India were allowed to bid in the auction.