CIL’s Coal Allocation under E-Auction Drop 39% Y-o-Y in Apr’19

Coal India Ltd has recorded a hefty fall of 39% in coal sales under various e-auction schemes during Apr’19.

As per the data provided by Coal Ministry, the company had allocated 7.2 MnT coal under various e-auction schemes in Apr’19. Notably, a higher quantity of 7.41 MnT was alone allocated under Special forward e-auction in the year-ago period.

Total coal allocation under e-auctions was marked at 11.75 MnT in Apr’18.

A break-up of coal sales made in various e-auctions indicate that coal allocation under spot e-auction had fell to a 5-month low during Apr’19, marked at 2.95 MnT. The allotted quantity was also 13% lower on the month from 3.39 MnT in Apr’18.

Coal volume sold under Special forward e-auction entitled for power producers decreased 59% Y-o-Y to 3.05 MnT in Apr’19, but had noted appreciable growth on the month from 1.12 MnT in Mar’19.

Allocation under exclusive e-auction increased 26% Y-o-Y to 1.2 MnT in Apr’19, while going down 38% M-o-M from 1.93 MnT in Mar’19.

No allocations were made under special spot e-auction during the month.

Source: Coal Ministry
Quantity in MnT

CIL’s coal supplies under e-auction had come under scrutiny with more volume diverted towards FSA in order to revive the power plant’s coal stock. Besides, the recent price revision initiated by MCL and NCL is likely to have an adverse affect on CIL’s performance in e-auctions.

CIL’s Coal Supply to Power Plant in Apr’19:

CIL’s coal supply to power plants witnessed a marginal rise to 40.7 MnT in Apr’19, but had came down 12% M-o-M from 46.1 MnT in Mar’18.

Notably it was the 7th consecutive month in which CIL had supplied coal in excess of 40 MnT to the power sector.

In order to meet the rising demand, Indian power ministry has envisaged to produce 1330 BU of electricity from conventional sources during FY20.

CIL has set a target of 530 MnT coal supplies to the power sector during the period.