Coal India Ltd (CIL) has reported a 25% drop in coal volume allocated under its various e-auctions during Feb’19.
As per the data provided by Ministry of Coal, CIL had allocated 5.02 MnT coal via sales in e-auction during Feb’19, compared with 6.66 MnT in Feb’18.
A break-up of sales indicate that quantity sold under spot e-auction had nearly reduced to half y-o-y in Feb’19. Spot auction had managed 3.06 MnT coal allocations in Feb’19 as against 5.96 MnT in Feb’18.
Total allocation in the first 11 months of FY19 (Apr’18-Feb’19) period was down 41% on the year to 30.15 MnT as against 51.38 MnT in the same period of FY18.
Coal allocated under Special forward auction for power producers, decreased 46% Y-o-Y to 0.38 MnT in Feb’19. Total allocation had fell 10% Y-o-Y to 26.02 MnT in the 11-month period.
No allocation was made in Exclusive e-auction for non-power sector in Feb’19. Total quantity under this scheme of auction had fell 13% Y-o-Y to 9.43 MnT in the 11-month period.
CIL’s Special spot-auction has fared better in the FY19, wherein coal sales have surpassed its previous year’s total. Total sales have totaled 3.58 MnT in the first 11-months, while a mere 0.7 MnT coal was allocated in the entire FY18.
| Feb’19 | Feb’18 | %Change | Apr’18-Feb’19 | Apr’17-Feb’18 | %Change | |
| Spot E-Auction | 3.06 | 5.96 | -49% | 30.15 | 51.38 | -41% |
| Special Forward E-Auction for Power | 0.38 | 0.7 | -46% | 26.02 | 28.93 | -10% |
| Exclusive E-Auction for Non-Power | – | – | – | 9.43 | 10.78 | -13% |
| Special Spot Auction | 1.58 | – | – | 3.58 | 0.7 | 411% |
Source: Coal Ministry
Quantity in MnT
Irregularities in Auction:
CIL’s coal sale via e-auction has been hit by an acute shortage of coal at the power stations.
As a matter of fact, South Eastern Coalfields Ltd, CIL’s largest coal producing subsidiary, has conducted monthly spot e-auction only 4 times since July last year.
SECL, do had scheduled a special forward e-auction for power producers today i.e on 14 Mar’19. But, coal quantity of 1,120,000 MT offered in the auction was 27% lower from 1,528,000 MT floated in the previous term.
Following the steady drop in coal inventories at the power plants, which had fell to 8-10 MnT during H1 FY19. CIL has maintained coal supplies to the power sector in excess of 40 MnT during each of the last 5 months.
Notably, CIL’s coal supplies to power sector in the 11-months of FY19 have reached 441.2 MnT, up 7% Y-o-Y. Eventually helping the power plants to regain desired coal stock levels, to tackle the strong demand during summer.
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