Coal India Ltd’s coal allocation via auction route has decreased 20% on the month to 10.48 mn t in Jan ’21 against 13.1 mn t in Dec ’20.
Concerned with high stock-piles at mines, the company had again offered bulk volume across various auction schemes, where sum of 75.45 mn t was the highest monthly total put up for sale in this fiscal. However, apart from robust demand from selective regions, overall coal sales witnessed subdued response during the month.
Subsidiary-wise auction summary for Jan ’21
Continual revival in industrial activities in Central India helped adjacent subsidiaries to fetch higher bookings. In particular, SECL registered least of 60% sale across the different auction windows which it had conducted. (Detailed scheme-wise result can be seen here).
Conversely, auctions held by ECL, CCL and BCCL in eastern region had seen hard time finding coal buyers as they only managed booking of 9%, 6%, and 5% respectively against the offered quantity. Notably, entire volume under CCL’s special forward auction was left unsold.
Stable price for coal sales:
Focus on volume expansion has not lent support to the coal prices in e-auction sales, where allocation remains much higher than the present demand.
Price realization for sold quantity increased marginally from INR 1731/t in Dec ’20 to INR 1746/t in Jan ’21, but the premium received against notified coal price remained unchanged m-o-m at 25%. ECL led the line with highest premium of 42%. In contrast, CIL’s largest coal producing subsidiary this fiscal-MCL, had failed to attain double-digit growth during the month.
During Apr ’20-Jan ’21, CIL has sold 91.92 mn t coal via auction route, up 75% y-o-y from 52.5 mn t. The company would be aiming to attain target of 120 mn t coal sales in the remaining two months at a time when demand for power is on the rise.
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