India: WCL Attains 89% Sales in Coal Offered for E-Auctions

Western Coalfields Ltd (WCL), the subsidiary of CIL operating its coal mines in states of Maharashtra and Madhya Pradesh, has reported substantial sales in various e-auction schemes, against the quantity offered in FY19.

WCL’s spot e-auction managed 95% sales accounting to 5.139 MnT coal against the offered quantity of 5.242 MnT during FY19. Sales volumes in Special forward e-auction was marked 79% against the offered quantity of 2.7 MnT. No coal was offered under Exclusive e-auction scheme during the fiscal.

It is pertinent to note that WCL had drastically reduced its coal offerings in e-auctions by 55% over the fiscal period.

In total, the company had sold 7.259 MnT coal across the two auctions against the offered quantity of 8.124 MnT, thereby fetching a net sales of 89% in FY19. Contrarily, WCL had managed 59% sale while allocating 10.714 MnT coal against the offered quantity of 18.09 MnT in the previous fiscal.

Apparently, lower coal offered this term had indeed yield WCL higher price realization in the e-auctions, wherein additional revenue of INR 770.29 Crores was generated during FY19, which was 164.62 Crores more than the amount generated across the two aforementioned auctions (spot and exclusive) in FY18.

Quantity in MnT
Revenue in INR Crores

A hefty fall of 78% was seen in WCL’s coal offering in Special forward e-auction during FY19. The company has been said to offer 2.91 MnT coal for the auction, in accordance with the CIL’s tentative schedule for FY20. Of the total quantity, the company has already offered 2.05 MnT via auction for a period 6 months running from Apr’19 to Sep’19.

WCL’s Coal Production & Off-take in FY19:
WCL achieved its highest ever coal production of 53.18 MnT in FY19 against last fiscal output of 46.22 MnT. Notably, it was the fifth consecutive year wherein the company had registered growth in coal production.

Interestingly, WCL was the only subsidiary of CIL to have attained its MoU target for FY19.
The company entered in MoU with CIL for contributing 49.7 MnT coal during FY19, against which it had been assigned an aspirational target of 52.5 MnT.

Besides, as a major sign of reform, company’s production from new/replacement projects opened in the last 4 years, contributed 67% of the total output, accounting for 35.82 MnT in FY19.

The company had also attained its highest ever coal off-take and over-burden removal during FY19.

WCL’s coal Off-take crossed the 50 MnT mark by dispatching 55.55 MnT coal in FY19 against 48.75 MnT during the last fiscal, thereby registering a growth of 14% over last year.

Over burden removal for the year stood at 192.03 Million Cubic meter, thereby registering a growth of about 3.6 % over last year.