Bharat Coking Coal Ltd (BCCL), the major prime coking coal producer in India, has witnessed subdued sales in the recently concluded Tranche V of the coal linkage auction.
The company had offered 4 MnT coking coal for sale in this auction scheme, with the current round envisaged specifically for the end-users pertaining to the steel sub-sector.
However, the auction failed to garner adequate participation from major steel companies, wherein SAIL emerged as the only successful coal buyer at the end of the sale process.
| Colliery | Grade | Specification | Offer Quantity | Booked Quantity | Notified Price |
| Ena OCP | W-III | PCC | 1.5 | 1.1 | 3519 |
| Godhur | W-III | HVMC | 0.5 | 0 | 3312 |
| South Jharia | W-III | HVMC | 0.8 | 0 | 3312 |
| Amal. NT-ST | W-IV | HVMC | 1 | 0 | 3147 |
| Amal. Sudamdih-Patherdih/Chandan | W-IV | HVMC | 0.2 | 0.2 | 3147 |
Quantity in MnT | Prices in INR/MT
Steel Authority of India, widely known as SAIL, had booked 1.3 MnT coal in the auctions, wherein whole 0.2 MnT coal offered from Amalgated Sudamdih-Patherdih/Chandan mine was brought in by the company. Whereas, out of the 1.5 MnT prime coking coal offered from Ena coal mine, SAIL had booked 1.1 MnT to cater its requirement.
While, no bids were seen for coal offered from Godhur, South Jharia and Amagated NT-ST mines.
(The quantity specified in the linkage auction is marked on an annual basis against which the quantity acquired by successful bidder can be lifted depending upon its monthly requirement.)
Moreover, the steelmaker had booked the coal quantity at the same price as notified in the offer sheet, amid lack of competitiveness.
The ministry had increased the tenure of the FSA for steel sector to 10 years which can be further extended by another 5 years on mutual agreement.
Despite the planned amendment, private players like TATA Steel, JSW and JSPL had kept themselves away from these auction citing issues regarding quality of coal and the underlying prices.
Officials from BCCL have informed that the unsold coal volume would be carried forward to the next tranche of linkage auction, while part of it would be sold through traditional e-auctions (Spot/Exclusive auctions). Especially, for the hard and soft coke manufacturers, the coal quantity would be specified in the month of Mar’20, with the auction for the same to be held on Apr’20.
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