Western Coalfields Ltd (WCL), the mining arm of CIL operating in Maharashtra state has announced that it would carry out sale of 3.5 MnT coal under special spot auction for end-users as well as traders.
The one-time auction to be conducted on 14 May’20 would envisages coal lifting through both rail and road mode of dispatch for the source-wise offered quantity.
Unlike the spot auction which offers a validity period of 45 days for lifting coal against the successful bid quantity, the upcoming special spot auction scheduled by WCL would offer validity period of three months.
Other salient features of the auction are listed below:
(a) Buyers can avail coal lifting against successful quantity from Jun’20 to Aug’20.
(b) Monthly Scheduled Quantity (MSQ) to be decided on mutual consent between buyer and seller.
(c) Payment of coal value against MSQ would have to be made by end of the preceding month.
(d) Validity of any DO under this scheme would be up to 15 Sep’20.
During the difficult market conditions, WCL’s flexible auction is seen as an extended support which would not only help in providing immediate financial relief to the customers but also give them opportunity to plan their requirement post lock-down.
Previous month’s auction result:
WCL had offered a total of 5.776 MnT coal under spot and special forward auction during Apr’20.
(a) In the spot auction, 31% of the material against the offered quantity of 0.676 MnT was sold at an average price realisation of INR 2305.18/MT.
(b) Special forward auction had seen sale of 6% of the material out of 5.1 MnT coal being offered.
As far as, special spot auction is concerned, the single sale during the month was carried out by CCL, wherein out of the offered volume of 4.6 MnT, only 3% of the material was booked at an average price realisation of INR 1234.93/MT.
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