CIL: Coal Sales under E-Auctions Up 55% M-o-M in Aug’19

Coal India Ltd has witnessed an up-tick in coal volumes sold under various e-auction schemes during Aug’19. The company had allocated 2 MnT coal via e-auctions in Aug’19, which was 55% higher on the month from 1.29 MnT in Jul’19.

Preliminary data from Coal ministry indicate that higher sales were noted from special forward and exclusive e-auctions. While sales under special spot auction was also recorded for the first time in FY20 during the month.

However, coal quantity sold under spot e-auction had fell 51% M-o-M to 0.61 MnT in Aug’19 compared with 1.24 MnT noted in Jul’19.

In accordance with the National Coal Distribution Policy approved by Ministry of Coal, e-auctions were envisaged as a transparent manner of providing coal to the customers which do not hold Fuel supply Agreement (FSA) with CIL.

Amid a critical coal stock faced by a number of power plants in the previous fiscal, CIL has raised the coal supplies via FSA thereby limiting the volumes earmarked for e-auctions. Although, the power plants’ bolster a better coal stock level this term, yet coal allocation in e-auction has remained meager primarily resulting from the subdued coal production.

Notably, total coal allocated under e-auctions have reduced to half during the first 5 months of FY20 (Apr-Aug’19) recorded at 19.56 MnT as against 39.62 MnT in the year-ago period.

Sales under spot auction decreased 39% on the year to 9.27 MnT during Apr-Aug’19. Besides, allocation under forward and exclusive e-auctions have also seen hefty decline in the 5-month period.

Source: Coal Ministry
Quantity in MnT

It is likely that CIL would offer 11.68 MnT coal for sale in special forward e-auction during Sep-Oct’19 period, as indicated in the tentative calendar. With three of the largest coal producing subsidiaries (SECL, MCL and NCL) lined up for their next phase of coal sales under the scheme.