NEW DELHI | June 06, 2017: Successful bidders in the upcoming mines auction will have to wash the metallurgical coal in the pit-head washery so as to improve the quality of dry fuel, as per the new auction rules.

"Successful bidders will be required to wash the coking coal obtained from the coal mine in a pit-head washery before utilising the same," an official said.

The government is likely to put on auction six coking coal mines this month for iron and steel sector.

The successful bidder, the official said, will not be permitted to use the coal extracted from the coal mine for any purposes other than utilisation in EUP (End Use Plant).

In a washery, coal is freed from impurities or dust by washing.

"Any middling or washery rejects generated from the coal mine may be utilised in any captive power plant of the successful bidder and the balance middling, if any, may be sold by the successful bidder to CIL (Coal India Ltd) at the CIL notified price less 15 per cen..." the official added.

Coking coal is a vital ingredient in the steel making process.

"Excess coal extracted beyond the requirement of the bidder shall be supplied to Coal India at CIL notified price less 15 per cent..." the official added.

The Centre's plan to auction coking coal blocks is aimed at augmenting the supply of the fuel used for steel-making and cater to growing demand.

(Source: http://economictimes.indiatimes.com/)