Mahanadi Coalfields Ltd. produces non-coking coal of Gr. B LF, Gr. C LF, Gr. D LF, Gr. E & Gr.F at Talcher field, Dist: Angul and lb field, Dist: Jharsuguda/ Sundergarh in Orissa.

Mahanadi Coaldfields Ltd. (MCL) sells coal by road, rail and rail-cum-sea (ex-Paradip) to linked consumers. With the introduction of e-auction from April 2005, where consumer / non-consumer / trader etc. can participate and bid for coal for his requirement and from his desired sources. The sale of coal under OSS has been discontinued.



Coal consuming units in core sector i.e. power, captive power plant, steel, cement, paper, aluminium and fertiliser are granted long term linkage by Standing Linkage Committee (long term) of Ministry of Steel and Ministry of Coal & Mines, New Delhi. Coal is released on the basis of quarterly allocation done by Standing Linkage Committee (Short Term). 


For Sponge iron units the linkage is granted by Ministry of Steel, New Delhi & on receipt of information from Ministry of Coal & Mines, New Delhi, coal is released on the basis of allocation from CIL, Kolkata

Coal Handling Plant for Loading Coal into Wagon

Coal Handling Plant for
Loading Coal into Wagon


Consequent to the total deregulation of coal since 1.1.2000, system of linkage/sponsorship has been dispensed with for non-core sector in the new coal sales policy.

Existing valid linked units can get coal through FSA to the extent of MPQ (best of valid order booking of last three years. Out of 27 valid linked units 14 units have signed FSA for supply of coal from MCL.

For their enhanced requirement or for new units coal can be procured through e-auction.

Feeder Breaker in a circuit of coal handling plant

Feeder Breaker in a circuit
of Coal Handling Plant


To bring more transparency in the system of distribution of coal and to get fair price for the product - Coal, as determined by the market forces on demand and supply, where any person / consumer / trader can participate. Ministry of Coal has introduced sale of coal through electronic auction from March / April 2005.

The prospective buyers / bidders are to register themselves with MSTC / Metal Junction, the auctioning agency on payment of such registration fee as prescribed as per their terms for participation in e-auction.

They will also have to, deposit EMD for the quantity to be bidded as per ther terms and conditions. 

After fulfillment of both the conditions, the prospective buyers are allowed to participate in e-auction by giving a password no. etc. by the auctioning agency to have accessibility for participation in e-auction.

(iii)    The EMD deposited will be returned to the unsuccessful bidders.

(iv)    For the successful bidders the EMD will be adjusted against the coal value.

(v)    The successful bidders who fails to deposit the coal value and lift the coal as per the terms & conditions, the EMD deposited will be forfeited to MCL.

After introduction of e-auction, the valid linked non-core sector consumers can also participate in e-auction where other buyers / traders will also participate. 

However, the valid linked non-core sector consumers who have not participated in e-auction are being given coal on monthly weighted average e-auction price to the extent of MPQ / FSA quantity for the time being.

Only e-auction is in vouge and MCL is offering above 2.0 Lakh Tonnes per month under e-auction to meet the coal requirement of Brick manufacturers, tiny consumers, traders and other non-core sector industries wanting coal beyond the MPQ / FSA quantity.

MoC has also allocated 0.50 Lakh Tonnes per annum in favour of Orissa State for selling / distribution of coal amongst small & tiny consumers through a nodal agency fixed by the State. Similarly, Govt. of India has appointed M/s NCCF Ltd. for the similar function and has allocated 3.72 Lakh Tonnes per annum on MCL.


For Booking of road sale order, the consumer should submit demand draft in the office of GM(S &M),MCL, Burla, Sambalpur in favour of Mahandi Coalfields Ltd. Coal Sales Realisation A/c Name of the Party and Payable at Sambalpur along with banks certificate (debit advice) from the draft issuing bank.

Rail programme against linkage are issued either against full advance payment or against bank guarantee/letter of credit. However, the party has to submit demand draft within 48 hours of presentation of RR/Coal bill for rakes booked against BG. Demand draft should be in favour of Mahanadi Coalfields Ltd., Coal Sales realisation A/c Name of the Party payable at Kolkata and is to be deposited in the office of GM(Sales), MCL, 15 Park Street, Kolkata.

For any queries regarding procurement of coal from MCL through e-auction or for any other matter relating to sale of coal from MCL may contact The Office of the General Manager (S&M), MCL, Burla, Sambalpur.