Ranchi, Aug. 18: Unscrupulous elements have turned the good intentions behind Coal India Limited (CIL)?s new policy, of selling coal to non-core sector companies through e-auction, to their own advantage.

The company, a major producer of coal in the country, adopted e-auction in May, ostensibly to eliminate the mafia?s monopoly and also to earn more money for the non-core sector sales. Such companies include small-scale industries, small consumers and brick kilns among others.

About 10 per cent of coal supplied by CIL goes to this sector, and 90 per cent to core sector companies ? state?s thermal power stations, National Thermal Power Corporation and public sector steel industries among others.

The idea behind introducing e-auction was to allow the participation of non-core players without the disadvantage of a physical presence and thus avoid the coal mafia, who often threaten the small buyers and manipulate things to their own advantage.

But the ground reality has turned out to be a bit different. The cartel has found a way into the virtual selling ground.

Normally, a base price ? cost price fixed by agencies such as CIL ? is fixed for a particular grade of coal meant for sale to the small units and bidding is invited from the non-core sector companies.

But now, the cartel?s network ensures that no one outside their influence participates in the process.

These unscrupulous elements bid at a rate marginally higher than the base price and continue to monopolise the sale of coal by rail ? referred to the mode of transportation after sale, as against the sale by road.

Those who resist invite the mafia?s anger. Recently a politican, from a northern state, was killed reportedly by the cartel. Sources said the man had resisted the mafia and wanted to go about the process alone. The incident also sent a chilling message to those who may have had thoughts of resisting the mafia, the sources pointed out.

The mafia does not interfere in e-auction for sale by road. But, they hikes the price of coal, sold by this process (road sale), by 200 per cent or more. The intention is to monopolise the supply of coal to non-core sectors through road sale.

?What needs to be investigated is which non-core sector buyer wants supply of coal by rail instead of road,? sources in the industry said.

Another burning issue is that the same grade of coal, sold through these two means, is sold at differing rates. ?Coal India limited should sell all the coal it wants to sell to the non-sector only through road. Because the price fetched by road sale is 200 per cent or more,? the sources added. Something needs to be done to rectify this anomaly in the sale of coal, he opined.

The coal companies, meanwhile, continue to be bogged down by a number of cases filed in various states.