North Eastern Coalfields (NECL), the coal producing unit of CIL, operating in Assam has concluded the spot e-auctions for Dec’18. The auction was held on 17 Dec’18.
The coal company has witness favourable outcome in the spot e-auctions, where only 30 MT coal was left unsold out of the total 29,000 MT offered for sale, also fetching high premium in the process.
Coal was offered in 4 lots from NECL’s Tikak and Tirap colliery; the coal quantity that remain unsold belonged to the lot of G1 grade of coal offered from Tikak.
Both the lots offered from Tikak and G1 grade coal offered from Tirap had fetched more than 50% premium over the base price, whereas the G2 grade of coal offered from Tirap had yielded mere 3% premium.
| Colliery Name | Grade | Calorific Value | Base Price | Average Bid Price | Quantity Offered | Quantity Sold |
| Tikak | G1 | 7100-7200 | 5068 | 8015.73 | 4000 | 3970 |
| Tirap | G1 | 7000-7100 | 4968 | 7909.56 | 12000 | 12000 |
| Tirap | G2 | 6700-7000 | 4868 | 5026.33 | 5000 | 5000 |
| Tikak | G2 | 6700-7000 | 4868 | 7351.75 | 8000 | 8000 |
| Total | 29000 | 28970 | ||||
Calorific Value in Kcal/kg
Prices in INR/MT
Quantity in MT
Major participants in the auction were coal traders belonging to the Assam, Bihar and Punjab region.
The higher premium garnered in the auction strongly addresses the domestic coal crunch in the country where higher response in seen in the CIL’s coal auction nowadays.
In total, NECL’s current auction had fetched 47% increase over the base price marked at INR 4931.72/MT. The average price realisation in the auction was INR 7273.98/MT.
The base price for coal was fixed in accordance with the previous revision, where for G1 grade of coal (GCV exceeding 7000 Kcal/Kg), the price shall be increased by INR 100/MT over and above the price applicable (including Add-on) of G2 (GCV band exceeding 5700 but not exceeding 7000 Kcal/Kg), for increase in GCV by every 100 Kcal/Kg or part thereof.
The ‘add on’ over the notified price of NEC coal is likely to earn CIL an annual revenue of INR 107 Crores, as stated by the company when the revision was enforced back in 27 Sep’18.
NECL’s coal production in the first 9 months of FY19 (Apr’18-Dec’18) had recorded significant growth of 26% Y-o-Y to 0.45 MnT as against 0.36 MnT recorded a year earlier. Company’s coal dispatch stood identical at 0.45 MnT in the 9-month period, but had fallen 11% Y-o-Y from the corresponding period total of 0.50 MnT marked in FY18.
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