South Eastern Coalfields Ltd (SECL) has witnessed decent response in the special spot auction by recording sale of 611,000 t coal at a price realization of INR 2634.93/t which was 20% higher than the assessed notified price of INR 2200.85/t.
The auction held on 29 Oct ’20 was specifically reserved for coal importers, wherein the company had offered 1,050,000 t coal, out of which 58% of the material was sold.
The latest auction by SECL outperformed the similar one conducted by CCL few days back in which coal allocation of 24% was recorded at a premium of 10% over the notified price.
Source-wise Results:
(a) Aggressive bidding was seen for G8 coal grade from Amlai colliery which was sold at premium of INR 651/t over the reserve price, thus drawing striking contrast from the previous auction held by CCL wherein the maximum premium noted for coal sale was INR 10/t.
(b) G7 grade had witnessed mixed fortune in the auction, while entire volume from Mahan-II colliery was booked at premium of INR 39/t, only 25% of the material was sold from the other lot at the reserve price.
(c) Lowest grade of non-coking coal, G9, and semi coking coal listed in the offer-list had failed to receive a single bid in the auction.
| Colliery | Grade | Quantity Offered | Quantity Booked | Notified Price | Reserve Price | Bid Price |
| Katkona UG | SC-II | 50,000 | 0 | 2796 | 3076 | 0 |
| Sharda OC | G6 | 200,000 | 173,000 | 2524 | 2777 | 2777 |
| Mahan II (Forest Area) | G7 | 200,000 | 200,000 | 2311 | 2543 | 2582.45 |
| Khairaha UG | G7 | 200,000 | 50,000 | 2311 | 2543 | 2543 |
| Amlai OC | G8 | 200,000 | 188,000 | 1757 | 1933 | 2584.49 |
| Bangwar UG | G9 | 200,000 | 0 | 1368 | 1505 | 0 |
Quantity in Metric Tonne (t) | Prices in INR/t
Special spot auctions have not been the preferred mode of coal sale than the other traditional auctions. Notably, SECL had last conducted an auction under this scheme almost 4 years ago back in Oct ’16.
However, with the modifications being introduced, it has revived interest among the subsidiaries by providing them an opportunity to liquidate their excess coal stock and in turn attain the long-term objective of import-substitution.
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