India: SECL expedites coal auctions to boost liquidation of stock

South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL, has preferred coal sales through auctions as an effective means for liquidating the excess stock, at a time when consumers have been shying away from taking the contracted supplies under FSAs.

The company has notified about its fourth auction to be held in the month of Jun’20, thus raising the coal volume offered via auction route.

It is pertinent to note that one auction each under spot, exclusive and special forward scheme have been already concluded in the ongoing month. However, the company has proposed a second phase of spot auction to be held on 29 Jun’20, in order to offer additional volume.

Quantity in metric tonne

The upcoming auction include sale of high GCV non-coking coal (G5, G7 and G8) along with 20 rakes of semi-coking coal being offered via rail-mode of dispatch, constituting a total quantity of 1.52 mn t.

Collectively, total quantity of 19.43 mn t coal has been offered by the company under various auction schemes during the first quarter of FY21.

Current stock levels:

SECL has significantly lowered its coal production in ongoing financial year of 2020-21. Company’s year-to-date output recorded at 24.94 mn t as on 22 Jun’20, has fallen 21% y-o-y from the levels attained in the year-ago period. Besides, it is assessed 5.6 mn t lower than the highest production of 30.5 mn t attained by MCL during the same period.

Nevertheless, cited as a major hindrance in production growth, SECL has managed to reduce its coal stock by 12% against the levels recorded in the end of Mar’20, a parameter which is bettered only by CCL.

Closing vendible stock subsidiary-wise

Quantity in million tonnes
*Stock details of NECL having minimal production comparable to other subsidiaries, is neglected.