WCL Cuts Coal Auction Prices by 20%

State run, Western Coalfields Field Limited (WCL), one of the largest subsidiaries of CIL, has announced to cut its coal e-auction prices by 20% on the notified price.

Coal India (CIL) has approved the reduction of MCL’s coal auction prices to provide more comfort to its consumers. While, this reduction will be beneficial for all the nearby states such as Chhattisgarh, Madhya Pradesh etc., those were sourcing coal from different sellers owing to higher cost of WCL.

However, already the notified price of WCL has been 20% higher compared with to other coal companies. Besides, 20% addition in e-auction coal prices was making WCL coal costlier, which was driving consumers to prefer other cheap sources.

Also the price deduction will be applicable for both forward and spot auction. However, the prices cut would be 10% of notified price in special forward E-auction for power consumers, including CPP and non-power consumers.

Meanwhile, both WCL and CIL are reviewing the matter on their level to make final decision on piece cut.

CIL’s coal production in FY16

Coal India, the world’s greatest coal producer, registered a total coal production of 536 MnT, out of targeted 550 MnT in FY16. While MCL has become the largest subsidiary as contributed about 26% to 138 MnT in total yearly production. Also WCL has recorded the highest production growth by 9% to 44.8 MnT in FY16.

With the conclusion of financial year, production figure is out, depicting that the giant registered a growth of 8.5% in FY16. CIL had produced 494 MnT of coal in FY15, which grew by 42 MnT in the last fiscal.

Source: CIL
Quantity in MnT