Sales volume recorded in Coal India’s e-auction have dropped 17% on the year to 66.03 MnT in FY20 as against 79.8 MnT in FY19.
Provisional data provided by CIL indicates that out of the total 94.76 MnT coal offered in various auctions, 70% of the material was allocated in the fiscal.
Better domestic availability of coal coupled with subdued demand from power sector was attributed to the tepid response in e-auction which had also minimized the profit earned from the sales.
Incidentally, the net sales had garnered an average price realization of INR 2143.07/MT in FY20, which had come down 17% on the year from INR 2581.59/MT in FY19. While, percentage increase over notified value for the total booking value was marked at 47% during the fiscal. The gain in the previous fiscal was assessed at 77%.
Detailed analysis of results from various e-auctions has been presented below:
Special Forward E-Auction (SFEA):
CIL had raised the quantity offered under Special Forward E-Auctions (SFEA) conducted specifically for the power producers, in order to elevate coal availability to the power sector. However, higher coal stock accumulated at the power stations reduced the dire need of coal procurement via auctions.
Total quantity put forward under SFEA was 44.05 MnT. It is pertinent to note that the miner had raised the offered volume by 33% from the tentative schedule provided at the beginning of FY20.
Out of the total quantity, 27.12 MnT coal was booked at an average price realization of INR 1617.52/MT.
Earning from the sales were affected by the price hike in floor price envisaged by NCL and MCL during the fiscal. The auction had attained gain of 29% over the notified value, which was the lowest among various schemes.
Spot E-Auction:
Coal offered in spot auction was limited by CIL’s decision to raise quantity under SFEA. Nevertheless, the auction had managed highest coal allocation amongst the various schemes.
Quantity sold in the auction was marked at 29.83 MnT in FY20, which was 78% of the total offered quantity of 38.28 MnT.
Exclusive E-Auction:
Like the spot auctions, coal offered under exclusive auction envisaged for non-power sector was reduced to elevate the quantity in SFEA. Notably, no sales from ECL, WCL and NECL was seen under exclusive auction during the fiscal.
Out of the 9.34 MnT coal offered for sale, 86% of the material was booked under this scheme at an average price realization of INR 2289.56/MT.
Special Spot Auction:
The auction offering longer validity period of lifting had seen sales of 1.04 MnT coal at an average price realization of INR 1435.86/MT in FY20. The entire volume was solely offered from CCL.
| Auction | Spot | Special Forward | Exclusive | Special Spot | Total |
| Total Qty offered | 38.28 | 44.05 | 9.34 | 3.10 | 94.76 |
| Total Qty allocated | 29.83 | 27.12 | 8.03 | 1.04 | 66.03 |
| Total Notified Value | 4759.66 | 3392.96 | 1381.6 | 114.62 | 9648.82 |
| Total Booking Value | 7774.33 | 4387.37 | 1839.2 | 149.76 | 14150.7 |
| Average Price Realisation | 2606.12 | 1617.52 | 2289.56 | 1435.86 | 2143.07 |
| Increase over Notified Value | 63% | 29% | 33% | 31% | 47% |
Quantity in MnT
Value in INR Crores
Price Realisation in INR/MT
Subsidiary-wise Allocation
Highest coal volume of 27.81 MnT was put forward by MCL across various auction schemes, of which 17.99 MnT was booked.
The lowest allocation was seen from NECL, wherein the entire volume of 0.02 MnT offered in spot auction was allocated. Still, the subsidiary had fetched gain of 163% over the notified value, primarily due to the involvement of expensive coal offered from high CV grades (typically G1 and G2).
In view of the nation-wise lock-down amid COVID-19, CIL has deferred all the auctions till 14 Apr’20. Post resumption, the first auction would be the spot auction conducted by WCL on 17 Apr’20.
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