Central Coalfields Ltd (CCL) has received tepid response for coal sales via special spot auction in Oct ’20.
The auction scheme has been a regular exercise for CIL to carry out coal sales which provide a longer validity of coal lifting compared to the traditional spot, special forward and exclusive auctions; however, it was especially reserved for coal importers in the current round.
The company had offered 1,693,300 t coal in the auction conducted on 22 Oct ’20, out of which 409,900 t was booked. Although, allocation of 24% of the material was the highest seen in the fiscal, but it had failed to attract adequate bid premiums.
Price realization for the sold quantity witnessed a marginal rise from INR 1608.21/t in Sep ’20 to INR 1622.54/t in Oct ’20, though premium over notified price dropped from 45% to 10% in the current round of auction.
Source-wise coal allocation:
Quantity offered through rail mode of dispatch saw subdued demand, despite including coking and washed coal products.
CIL had mandated that a buyer has to acquire minimum 6 coal rakes in case of road sales. For W-IV grade of coking coal, only one party had shown interest. While, for washed non-coking coal, 15 out the 265 rakes being offered from Bachra colliery were booked at the base price of INR 2798/t.
Coal sale under road mode was better in terms of allocation, wherein entire volume of G10 was lifted, which also recorded a nominal gain over the reserve price.
| Colliery | Mode | Grade | Quantity | Reserve Price | Bid Price | |
| Offered | Sold | |||||
| Rajrappa (W) | Rail | W-IV | 220,000 | 24,000 | 2798 | 2789 |
| Bachra | Rail | Non-Coking Washed Coal | 1,060,000 | 60,000 | 2472 | 2472 |
| Ashoka Coal Dump | Road | G9 | 132,400 | 45,000 | 1505 | 1505 |
| Ashoka Coal Dump | Road | G10 | 280,900 | 280,900 | 1351 | 1360.26 |
Quantity in metric tonne (t) | Prices in INR/t | In case of rail mode, 4000 t represent one rake of coal.
In order to reduce dependence on imports, CIL has modified the special spot auction to encourage importers to procure domestic coal under import substitution exercise. Next in line, NCL and SECL have also scheduled the auction which is going to be held tomorrow.
As far as CCL is concerned, the company would carry out another round of special spot auction, this time open for all coal buyers, for sale of 2,235,000 t coal on 30 Oct ’20.
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