With the multiple issues plaguing the coal supply, the country today is facing acute shortage of coal and the power stations running on very low inventory of coal. To improve the worsening coal supply issue, Coal India (CIL) has decided to offer the October -11 e-auction quota coal to power companies first (though the same would be under of the FSA quota for FY12). This move will affect cement manufacturers who have significant dependence on e-auction coal. In the event of short supply of coal through e-auction, cement manufacturers will have increased dependence on imported coal. Though prices of coal in international markets have been stagnant at $120, the sharp depreciation of INR against USD has increased the landed price. Currently price of imported coal is Rs 6600/t as compared to e-auction price of Rs 3400/t. However adjusted for calorific value, the cost of imported coal is 15-20 per cent higher.