Coal auctions conducted by CIL have witnessed limited participation despite the adequate measures taken to minimise the financial hardship of the consumers.
The company had managed to sale 9.11 MnT coal against the massive amount of 41.36 MnT coal being offered in various auction schemes for Apr’20, which was put forward to liquidate the excessive stock accumulated at the end of FY20. In contrast, a total of 11.43 MnT coal was offered in the auctions held in Mar’20, of which 31% of the material was sold.
In a bid to provide cheaper coal in the auction, CIL had scrapped the upper limit on prices. However, there was lesser urgency seen from the buyers to procure coal in the difficult market condition, wherein 51% of the sold quantity was booked at the base price.
The tepid demand had also taken a toll on profit earned in the auction, where the booking value had fetched a mere 7% increase over the notified price. Besides, average price realisation for the sold quantity was assessed 16% lower on the month at INR 1376.83/MT in Apr’20 compared with INR 1639.85/MT in Mar’20.
Results of various e-auction schemes:
CIL had offered a huge quantity of 23.985 MnT for sales in special forward auction envisaged specifically for the power sector, with a twin objective of:
(a) Liquidating its pit-head stock and,
(b) Supplying adequate coal to the power station in order to ensure uninterrupted electricity during the lock-down.
However, with power plants already having coal stock at record levels, the buyers had remain side-lined from these auctions, wherein only 13% of the material was booked.
A better response was seen in the exclusive auction envisaged for non-power sector, where 59% of the offered volume was lifted.
While these two auctions fetched almost nil premium, the spot auction had yielded 22% increase over the notified value but recorded lowest allocation in terms of quantity which was only better than that seen in special spot auction.
| Auction | Special Forward | Exclusive Non Power | Spot | Special Spot | Total |
| Total Qty offered | 23.985 | 6.6 | 6.18 | 4.6 | 41.366 |
| Total Qty allocated | 3.038 | 3.905 | 2.018 | 0.146 | 9.108 |
| Percentage Sold | 13% | 59% | 33% | 3% | 22% |
| Total Notified Value | 293.76 | 508.74 | 351.98 | 18.02 | 1172.5 |
| Total Booking Value | 295.94 | 508.89 | 431.15 | 18.03 | 1254.02 |
| Increase over Notified Value | 1% | 0% | 22% | 0% | 7% |
| Average Price Realisation | 974.13 | 1303.18 | 2136.52 | 1234.93 | 1376.83 |
Quantity in MnT
Notified and Booking value in INR Crores
Realisation in INR/MT
Coal allocation by individual subsidiaries:
Highest coal quantity of 12.42 MnT was offered by CCL, but had recorded subdued sales of 8% for the auctions held in Apr’20. Allocation of 4.296 MnT coal from MCL was the highest amongst the subsidiaries followed by 1.67 MnT recorded from NCL.
No auctions were scheduled by BCCL and NECL during the month.
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