Coal India Ltd has notified the schedule of Coking coal auction for Steel sector under the III tranche of Linkage Auction. The company has offered 652,000 MT coal from the mines of BCCL WCL and CCL, for the auction starting from 24 Oct’17.
CIL has successfully concluded Linkage auction for Cement, Others and Sponge iron sectors in the previous phase of III Trance auction under the non regulated sectors.
Coking coal availability is insufficient in the country with respect to the growing demand for Steel production. Domestic Coking coal production by CIL was 54.65 MnT in FY17 which was merely 9.9% of the total coal production of 554.14 MnT for the same period.
Steel Ministry has earlier proposed to replace 25-30% Coking coal by converting Non-coking coal into Coking coal in order to reduce import cost of Coking coal.
Most of the Coking coal requirements are catered by imports which have increased 7% Y-o-Y to 25.89 MnT during H1 FY18(Apr’17-Sep’17) compared with 24.16 MnT in H1 FY17, according to CoalMint Research.
Fulfilling coal requirements through Linkage auction not only assures long term fuel supply security but also save considerable amount compared with the procurement of coal through spot auctions. However, CIL has also notified that the successful bidder in the Coking coal auction should not source coal from State Nominated Agencies thereafter.
| Date | Time | Company | Primary Source | Declared Grade |
Size | Notified Price | Quantity Offered | Secondary Source |
| 24-Oct | 11.00AM | BCCL | AKWM OCP | W III | Steam | 3,150 | 100,000 | Sendra Bansjora |
| 24-Oct | 2.00PM | CCL | Jharkhand | W-IV | ROM | 2,300 | 300,000 | Tapin(N) |
| 24-Oct | 5.00PM | BCCL | Block IV | W III | Steam | 3,150 | 36,000 | Tetulmari |
| 25-Oct | 11.00AM | BCCL | Amal. NT-ST Jeenagora | W III | Steam | 3,150 | 60,000 | Kuya |
| 25-Oct | 2.00PM | BCCL | New Akashkinaree | W III | Steam | 3,150 | 36,000 | Nichitpur |
| 25-Oct | 5.00PM | WCL | Tandsi UG | WG-IV | Mix | 2,910 | 120,000 | – |
Source: MSTC Ltd
Quantity in MT
Price in INR/MT
After the completion of Coking coal linkage auction, CIL is set to have Linkage auction for Captive power plant sub-sector, schedule of which is to made available shortly at the MSTC website.
Leave a Reply