Home >Companies >News >Coal India's e-auction allocation jumps 65% in Apr-Sept
Western Coalfields Limited (WCL), a subsidiary of Coal India Limited (CIL) offered a substantial additional quantity of coal to different power gencos of central, west & south India at a cheaper landed price in New Delhi on Thursday. (ANI Photo)
Western Coalfields Limited (WCL), a subsidiary of Coal India Limited (CIL) offered a substantial additional quantity of coal to different power gencos of central, west & south India at a cheaper landed price in New Delhi on Thursday. (ANI Photo)

Coal India's e-auction allocation jumps 65% in Apr-Sept

  • The increase in volume terms stood at 16.3 MT
  • With no dearth of coal, the company is confident of meeting the increased demand, it said.

State-owned CIL on Tuesday said the total coal allocation under its four e-auction windows registered about 65% year-on-year rise during the first half of the current financial year.

"Coal India Ltd (CIL) booked 41.4 million tonnes (MT) raw coal in e-auctions during April-September 2020, compared with 25.1 MT booked in the corresponding period last fiscal," the company said in a statement.

The increase in volume terms stood at 16.3 MT, it added.

With the industrial and commercial activities reviving after the unlock, CIL is hopeful that the demand sustains and the sales get boosted soon.

With no dearth of coal, the company is confident of meeting the increased demand, it said.

Last year's coal import trend showed that 40% of the imports of dry-fuel were by traders.

CIL decided to give more thrust in auction sales that resulted in higher volumes.

This is also in line with the government's push on 'Atmanirbhar Bharat' in the energy sector, it said.

"Even with the pandemic slowdown, CIL could net 10% average premium over notified value in the first six months of the current fiscal as compared to 48% of the same period year, but the aim was to increase volume supplies," the company said.

It added that the company anticipated the liquidity crunch that COVID-19 would bring to its customers and brought down the reserve price close to zero to help them lift more coal during the lockdown phase.

In two tranches of three months each, CIL kept down its reserve price beginning April till September.

After the company's board has given its nod, CIL for its October auctions has injected a rise in reserve price ranging from zero up to a maximum of 10% over the notified price, as a dipstick survey to gauge the market response.

Based on the market reaction and the premium fetched from sale prices, the company will decide on reserve price for November.

In volume terms, the booked quantity under spot e-auction was the highest at 16 MT during the first half of 2020-21 clocking a growth of 43%, compared with 11.2 MT booked in the April-September period of last fiscal.

Spot e-auction is meant for both regulated and non-regulated customer base.

It was followed by 13.4 MT booked in exclusive auction for non-power consumers.

Special forward auction for power producers bagged 10 MT, while special spot auction yielded 2 MT during the period.

With the power sector having 34.2 MT coal stock sufficient for 19 days and no plant in critical condition for want of coal at September-end, CIL could focus on the non-power segment where the response from exclusive non-power e-auction was rousing in growth terms with almost a five-fold jump.

"Exclusive auction for non-power consumers during the referred period at 13.4 MT was up by 11.1 MT, against 2.3 MT that this sector booked last year in the corresponding period. In the growth terms, the rise is a whopping 482%," it said.

The power sector showing signs of recovery registering double-digit growth in the first week of October bodes well for us to ramp up our sales, the firm said.

The power sector is CIL's major coal-consuming customer accounting for around 80% of its entire sales.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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