Coal India Ltd’s coal allocation via auction route has dropped to its lowest total for the fiscal, in line with the reduction in volume being offered for sale.
The miner had recorded sale of 4.37 mn t coal in the auctions during Sep ’20, which decreased 56% m-o-m from 9.83 mn t in Aug ’20. Besides, allocated volume was recorded 22% lower on the year from 5.59 mn t in Sep ’19.
Premium fetched over notified price remain unchanged m-o-m at 12%, but due to lesser volume involved price realization for allocated quantity dropped 5% m-o-m to INR 1464.67/t in Sep ’20 against INR 1535.77/t in Aug ’20.
| Parameters | Sep’20 | Aug’20 |
| Allocated Volume | 4.37 | 9.83 |
| Total Notified Value | 569.32 | 1350.57 |
| Total Booking Value | 640.06 | 1509.2 |
| Price Realization | 1464.7 | 1535.77 |
| % Increase over Notified Price | 12% | 12% |
Volume in mn t | Value in INR Crore | Price in INR/t
Subsidiary-wise allocation:
There was a significant decline noticed in auctions conducted across various subsidiaries, which were confined to BCCL, NCL, WCL and SECL. In contrast, all subsidiaries except NECL had offered coal in the previous month.
Spot auctions managed an uptick in price realization driven by higher premium received against coal sale in BCCL’s auction, which was even better in the sole special spot auction held in the month carried out by CCL. (Detailed subsidiary-wise auction summary can be seen here).
CIL assisted by NCL and CCL made an impending comeback in terms of auction conducted for power sector, as both the subsidiaries were on hands with offering in the special forward scheme. However, it resulted in a dull affair as most of the coal volume was sold at reserve price thus fetching a lower premium.
In a recent development, CIL board has decided to restore upper cap on notified price in auctions from Oct ’20 onward, a move that would tempt the subsidiaries to offer more coal in these auctions in order to generate additional revenue.
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