Bharat Coking Coal Ltd (BCCL), the prime coking coal producer in the country, has re-initiated the coal sales via spot scheme of auction for May’20.
It is pertinent to note that the company had postponed the auction in Apr’20 due to critical conditions arising because of lock-down. While the previous notified auction for May’20 was also withheld on similar grounds, which was scheduled to be held on 19 and 20 May’20.
In the latest round of spot auction, the company has intended to sale: (a) 286,500 MT of coal (b) 127,450 MT of washery products (c) 65 rakes of coal via rail mode, which would be conducted with the help of service providers M Junction and MSTC on 21 and 22 May’20.
Detailed source-wise coal offered in the auction can be seen here.
Focus on raising non-regulated sector’s coal supplies:
The coal company has aimed to elevate the coal allocation of non-power sector in the auction, where coking coal comprise around 90% of the total offered quantity.
In accordance with CIL’s directive to mitigate financial hardship of the consumers, reserve price of coal offered from various sources was kept same as the notified price for the particular grade.
Besides, in order to provide bulk volume to the end-users, the company had revised the quantity of rakes put for sale to 65, from earlier offered 45, via rail mode of auction.(One rake carries approximately 4,000 MT coal).
Looking for revival:
In a recent conversation with BCCL CMD Mr. Prasad, CoalMint learnt that the company was keen to raise the production of coking coal, but had been facing constraint in coal dispatch due to dull market conditions.
The recent auction is seen as a measure to liquidate some of the accumulated stock which has created a hindrance in the production growth.
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