South Eastern Coalfields Ltd (SECL) has concluded the special forward e-auction for power producers on 10 Jun’19. Notably, it was the second e-auction to be concluded in the month of Jun’19.
Similar to the spot e-auction held earlier, the company had recorded 100% sales in the Special forward auction.
SECL had offered 880,000 MT of coal in the auction, comprising of G14, G16 and G17 grades from its two mines viz. Gare Palema IV/1 and Gare Palema IV/2&3.
Unlike its counterparts, SECL had kept the same upper cap for fixing the reserve price of coal in special forward e-auction. Earlier, MCL and NCL had increased the prices by 10% and 20% respectively for the auction.
As per CoalMint Research, SECL’s special forward auction in Jun’19 had fetched a 2-fold increase in average bid price over the reserve price. The company had garnered an average bid price of INR 1141.41/MT against the reserve price of INR 555/MT assessed in the auction.
Sale of G16 grade of coal earned the highest premium over the reserve price, followed by G17 and G14. However, the highest bid price was received for G14 grade of coal.
| Source | Grade | Reserve Price | Average Bid Price | % Increase over Reserve Price | Quantity Sold |
| Gare Palema IV/2 & 3 | G14 | 823 | 1269 | 54% | 40,000 |
| G16 | 555 | 1217.73 | 119% | 600,000 | |
| Gare Palema IV/1 | G17 | 492 | 928.33 | 89% | 240,000 |
| Total | 880,000 | ||||
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
Deviation from Tentative Calendar: Special forward e-auction provides the provision of longer validity period of lifting against the successful quantity being acquired in the auction. Accordingly, the lifting period for the auction was valid for 3-months starting for Jun’19 (Jun-Aug’19).
SECL had followed the tentative calendar for scheduling its first special forward auction for FY20, but the actual quantity floated was nearly 55% lesser from 1,940,000 MT marked for the period.
Major Coal Receivers:
The total coal volume was distributed among 9 power producers based in Chhattisgarh and Madhya Pradesh.
Jindal power emerged as the largest coal receiver in the auction with purchase of 384,000 MT coal, followed by DB Power, RKM Powergen and SKS Power.
Summary of deals concluded by the top-5 receivers is tabulated below:
| Consignee Name | Grade | Reserve Price | Bid Price | Quantity Taken |
| Jindal Power | G16 | 555 | 1205 | 284,000 |
| G17 | 492 | 922 | 100,000 | |
| Total | 384,000 | |||
| DB Power | G14 | 823 | 1263 | 4,000 |
| G16 | 555 | 1245 | 88,000 | |
| G17 | 492 | 942 | 56,000 | |
| Total | 148,000 | |||
| RKM Powergen | G14 | 823 | 1273 | 4,000 |
| G16 | 555 | 1225 | 96,000 | |
| G17 | 492 | 942 | 20,000 | |
| Total | 120,000 | |||
| SKS Power | G14 | 823 | 1263 | 12,000 |
| G16 | 555 | 1225 | 28,000 | |
| G17 | 492 | 922 | 64,000 | |
| Total | 104,000 | |||
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
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