- Chhal and Jampali mines key suppliers
- Jindal Power emerges as top buyer
Coal India subsidiary South Eastern Coalfields Ltd (SECL) successfully allocated 481,900 tonnes (t) of coal in its auction dated 17 July 2025. The auction attracted robust interest, especially in mid-to-low grade categories, with average premiums reflecting selective demand strength in an otherwise cautious market environment.
Auction highlights
The largest allocation was seen in G10 grade with 131,600 t booked at INR 1,666/t, reflecting a modest premium over the reserve price of INR 1,628/t and the notified price of INR 1,356/t. G11 (100,000 t at INR 1,436/t) and G12 (70,000 t at INR 1,337/t) also saw significant volumes with winning prices slightly above reserve levels.
Notably, G7 coal was booked at a strong premium, with 40,000 t allocated at INR 3,543/t – about INR 500/t above the reserve price. G6, too, fetched INR 3,459/t for 32,000 t, indicating sustained demand for higher-CV grades despite muted sentiments in the spot market.
Meanwhile, G15 grade coal (41,250 t) fetched exactly its reserve price at INR 882/t, suggesting no price competition in lower-CV segments.
Overall, the average blended winning price stood at INR 2,252/t, from the average reserve price of INR 2,145/t, showing continued preference for selective booking at strategic price points.
Top buyers
Jindal Power Ltd. emerged as the dominant participant, securing 143,500 t at an average price of INR 1,542/t. Other key winners included DB Power Ltd. (20,000 t at INR 1,628/t), Balaji Coal & Scrap (18,000 t at INR 1,533/t), Singhal Steel & Power Pvt. Ltd. (15,000 t at INR 1,468/t), and Vimla Infrastructure (14,000 t at INR 1,110/t).
Key coal sources
The largest share of the auctioned quantity came from Chhal OC, contributing 171,850 t at an average price of INR 1,308/t – largely consisting of low grade coal. Jampali OC and Baroud OC followed, with 100,000 t and 70,000 t allocated respectively.
Premium bookings were observed from underground mines like Khairaha UG (40,000 t at INR 3,543/t), Sharda OC (20,000 t at INR 3,628/t), and Kurja UG (6,000 t at INR 3,597/t), reflecting continued preference for mid-CV grades for blending or industrial use.
Market scenario
SECL’s latest auction showed that while overall market demand remains cautious, selective buying continues for low-CV coal and strategic mid-grade lots. The relatively muted competition in low-grade segments suggests subdued demand from cost-sensitive sectors, while premium bids for mid-CV reflect strong blending or stock replenishment interest.
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