CIL’s coal allocation in the e-auctions have witnessed significant drop during Apr-Nov’18 period, thereby yielding higher gains in the corresponding coal sales.
As per the data provided by Coal Ministry, coal allocation in various auctions viz. Spot, Special forward auction for power and Exclusive auction for non-power auctions, have remain subdued as in order to cater the enormous demand for power, a lesser quantity was supplied for sale in the auction process.
CIL’s spot e-auction had seen allocation of 1 MnT coal in Nov’18, yielding 111% increase over the actual notified price. The allocated quantity had seen remarkable growth on the month when only 0.12 MnT was allocated in Oct’18, but was still 81% lower on the year from 5.24 MnT recorded in Nov’17.
Total allocation in the Apr-Nov’18 period has fallen 41% Y-o-Y to 18.84 MnT compared with 31.71 MnT in Apr-Nov’17.
Coal allotment in Special Forward e-auction for power producers was 1.53 MnT in Nov’18, recording a 262% increase over the notified price. However, the allocated quantity was 52% lower on the year from 3.17 MnT in Nov’17. Total coal supplied under this scheme of auction has decreased 20% Y-o-Y to 21.91 MnT in Apr-Nov’18 period.
No allocation have been made in Exclusive e-auction for non-power sector in the past three months, consequently, total coal allocated under this scheme was 7.3 MnT in Apr-Nov’18 period, down 32% Y-o-Y from 10.78 MnT in Apr-Nov’17.
Higher Price Realisation in E-Auctions:
CIL’s e-auction provides a mode of coal supply for end-users and traders which do not have a proper fuel supply agreement with the coal company. However, with a number of power plants having critical coal stock levels, the coal company had not been conducting its e-auction properly as per schedule.
Subsequently, in the occurrence of a new auction, higher response is seen among the buyers.
Recently, the spot e-auction concluded by CIL’s largest subsidiary-SECL in Dec’18 had witnessed overwhelming response among the participants where all the offered quantity was booked at premium to the base price.
The auction process indeed had yielded an average realisation of INR 2178.22/MT against a base price of INR 965.04/MT for the coal offered.
CIL’s average price realisation is garnering steady rise as a whole, which had last incurred INR 2592/MT in the coal sales via e-auctions during Q2 FY19. The higher demand for coal in auctions indicate that the respective prices are likely to surpass previous year’s levels of INR 1839/MT marked in FY18.
Upcoming E-Auctions:
Mahanadi Coalfields Ltd (MCL), the subsidiary of CIL operating in Odisha, has envisaged coal sale via Special Forward e-auction and Exclusive e-auction in Jan’18.
The company has offered 1.5 MnT coal in both these auctions, which are scheduled to be held on 8th and 10th Jan’18 respectively.
Both these auction entitle coal to be lifted for a longer period to the successful bidder, which is valid for 3 months from Jan’18 (i.e. Jan’18-Mar’18).
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