Mahanadi Coalfields Ltd, the mining arm of CIL operating in Odisha, has revised the cap applied over the notified base price of coal, resulting in an increase in reserve price for various e-auctions.
The coal company has increased the reserve price for spot e-auction from 20% to 30% over the notified price as specified by CIL. While in case of special forward and exclusive e-auctions, the reserve price has been raised from 10% to 20%.
It is pertinent to note that CIL had affixed the base price for various grades of non-coking coal varying from G1 to G17, which was last updated on 8 Jan’18.
The set of prices which vary differently for both power and non-power sector then forms a basis for calculating the reserve price of coal in the e-auctions.
For instance, earlier in Mar’19 spot e-auction, the reserve price of G14 grade of coal offered from MCL’s Lakhanpur colliery was set at INR 1077/MT, which was 20% higher than its corresponding base price of INR 897/MT.
However, the company has applied the revised prices in its upcoming e-auction for Apr’19, wherein the reserve price of G14 grade from the same colliery was fixed at INR 1167/MT, representing a 30% increase over the base price.
Ultimately, the price revision has resulted in an increase of INR 90/MT for G14 grade of coal.
The price revision has been applied in coal offered from various collieries of MCL for Apr’19 spot auction, which is scheduled on 26 Apr’19.
The colliery-wise offers in the spot e-auction for Apr’19 are tabulated below:
| Name of Colliery | Grade | Size | Quantity Offered | Base Price | Reserve Price | % Increase over Base Price |
| Lakhanpur | G14 | ROM | 1.5 | 897 | 1167 | 30% |
| Belpahar | G13 | Steam | 0.1 | 1250 | 1625 | 30% |
| Belpahar | G14 | ROM | 0.9 | 897 | 1167 | 30% |
| HBI | G12 | Steam | 0.25 | 1333 | 1733 | 30% |
| Kulda | G13 | ROM | 5 | 980 | 1274 | 30% |
| Garjanbahal | G13 | ROM | 2 | 980 | 1274 | 30% |
| Hingula | G13 | ROM | 3 | 980 | 1274 | 30% |
| Balram | G13 | ROM | 2 | 980 | 1274 | 30% |
| Bharatpur | G13 | ROM | 0.55 | 980 | 1274 | 30% |
| Jagannath | G12 | ROM | 0.6 | 1063 | 1382 | 30% |
| Ananta | G12 | ROM | 1 | 1063 | 1382 | 30% |
| Bhubaneshwari | G12 | ROM | 1 | 1063 | 1382 | 30% |
| Lingaraj | G12 | ROM | 0.6 | 1063 | 1382 | 30% |
| Kaniha | G14 | ROM | 1.5 | 897 | 1167 | 30% |
| Orient-2 | G10 | ROM | 0.0895 | 1228 | 1597 | 30% |
| Orient-2 | G13 | Steam | 0.35 | 1250 | 1625 | 30% |
| Orient-3 | G10 | ROM | 0.042 | 1228 | 1597 | 30% |
| Orient-3 | G12 | Steam | 0.05 | 1333 | 1733 | 30% |
Quantity in Lakh Tonnes
Prices in INR/MT
Besides, the revision would also be followed in the MCL’s upcoming special forward and exclusive e-auctions for Apr’19-Sep’19 period or till finalisation of next rates.
MCL’s E-auction summary for FY19:
Tightness in domestic coal market has resulted in remarkable sales of coal under various e-auctions, wherein almost 99% of the total offered volume was booked during Apr’18-Jan’19 period.
As per the data provided from MCL, the company had witnessed 15.05 MnT coal sales in various e-auctions, out of 15.205 MnT coal offered in the 10-month period.
Highest coal sales were made though spot e-auction wherein 7.066 MnT coal was sold, followed by 4.984 MnT in special forward e-auction and 3 MnT through exclusive e-auctions.
However, the allocations made in spot e-auctions have been subdued in FY19. MCL had recorded average sales of 0.7066 MnT/month through spot e-auctions in FY19, which was nearly 37% lower on the year from 1.1202 MnT/month in FY18.
No allocations were made in special spot and forward e-auction in the first 10 months of FY19. Notably, forward e-auction has been discontinued from FY18.
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