SECL’s Coal Auction Prices lift upto 600/MT as compared to floor Prices

SECL’s Coal auction fetched bids higher by around INR 100-600/MT compared to the base price as the participants are ready to pay high prices for domestic Coal.

SECL, the largest subsidiary of Coal India, recently conducted an e-auction on 11 Apr’15 to offer 0.4 MnT domestic Coal. The auction saw an eager participation by the companies who lost their mines in captive Coal block auctions. Jindal Power, Bharat Aluminium, Prakash Industries and Ambuja Cements emerged as bidders for the largest quantities in this auction.

One auction participant highlighted, “Recent auction prices have increased up to INR 600/MT compared to base prices set by the company for different grades. The opinion is that the rise in prices was based on results of captive Coal block auctions.”

In the order of 20th Mar’15, the government had cancelled winning bids for total 9 captive coal blocks and put them up for re-examination. The companies whose bids were cancelled included JSPL and BALCO too.

Bharat Aluminum received about 44,000 MT quantity of size G10 (4300-4600 GCV) ROM coal at INR 1,922/MT with base price of INR 1392/MT. Meanwhile Jindal power bid INR 1008/MT for size G14 ROM coal (3100-3400 GCV) and fetched the largest quantity of about 49,000 MT; base price was set INR 888/MT.

Prakash Industries’ bid price was about INR 580/MT more compared to base price for size G10 ROM coal. The company received 40,000 MT Coal, bidding highest at INR 1972/MT.