South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL, has maintained the same upper cap for fixing the coal prices in the auctions to be held on Feb’18.
CIL had empowered its subsidiaries to fix the reserve prices according to the market conditions, thereby lifting the upper cap of 20% and 10% for Non-power and Power consumers.
However, SECL has kept the previous method of setting the coal prices. Accordingly, the company has set coal reserve price for spot e-auctions at 20% higher than the notified price for Non-power consumers; while for Special Forward e-auction for power sector, reserve price has been set 10% higher than the corresponding notified price for Power consumers.
SECL’s Spot e-auction for sales of 887,000 MT coal is to be held on 26 Feb’18; while the Special forward e-auction for power sector is set to conclude one day later i.e., on 28 Feb’18.
Special Forward E-auction for Power Sector:
Special forward e-auction for power producers were started in 2015-16 for making the coal available to the power producers who were in need of coal, with the assurance of supply for longer period.
The current scheme is the fourth phase of the special forward auction for power producers in the FY18 offering 700,000 MT coal, valid for lifting coal against successful quantity upto 3 months from Feb’18 (Feb’18-Apr’18).
Bidders have to bid source-wise, grade-wise coal quantity in aggregate as per their requirement, following which the successful bidders would have to declare the amount in which the coal quantity is to be distributed for the 3 month period(Feb’18-Apr’18), within 7 days of auction.
In case, no such request is made by the bidder, SECL will distribute the quantity booked in equal monthly instalments.
| Area | Source | Grade | Size | Notified Price | Reserve Price | % Increase in Reserve Price over Notified Price | Quantity Offered |
| Sohagpur | Dhanpuri OC (Stock) | G6 | ROM (-250 mm) | 2317 | 2549 | 10% | 150000 |
| Bhatgaon | Mahan II OC (Stock) | G7 | ROM (-250 mm) | 1926 | 2119 | 10% | 250000 |
| Raigarh | Chhal OC | G13 | ROM (-100 mm) | 817 | 899 | 10% | 300000 |
Source: SECL
Price in INR/MT
Quantity in MT
The schedule for the sale of coal by Road mode has been listed below:
| Event | Date |
| Registration with Service provider (MSTC Ltd) | 17 Feb’18-27 Feb’18 |
| Submission of EMD (in the form of BG) | 17 Feb’18-23 Feb’18 |
| Submission of EMD (in the form of DD, RTGS etc) | 17 Feb’18-27 Feb’18 |
| Auction Date | 28 Feb’18 |
According to the data provided by Ministry of Coal, under the Special forward coal auctions 27.4 MnT coal has been allocated during Apr’17-Dec’17, yielding a profit of 25% over the notified price.
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