The government is exploring ways to auction coal produced by Coal India to avoid aspersions of supplying the scarce fuel at low prices. A senior government official said a panel would work out various options to auction the output while also ensuring that power tariffs do not increase as a result. He said the proposal is at a very nascent stage. The proposal could come as a blow to steel and cement industries which consume the dry fuel but a boon to the State-run miner, particularly just before a share sale. The government had in September last year approved a plan to sell 10 per cent of Coal India to raise about Rs 23,000 crore. The company sells coal to power consumers at government notified prices and to unregulated consumers like steel and cement at about 35 per cent over the notified rates - both at huge discounts when compared with the price of imported coal.
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