Coal India Ltd has witnessed a drop of 38% in coal sales through spot e-auctions, as it accelerates its coal supplies for power sector.
There was a need of urgency to revive power stations having critical coal stock levels. Ultimately at the end of FY19, no power plant was noted under critical/ super critical list of CEA for need of coal, aided by an elevated coal supplies from CIL.
However, the feat was attained at the expense of coal supplies under various e-auctions, which have remained subdued in FY19.
As per the data provided by Coal Ministry, coal allocation in CIL’s spot e-auction had dropped to 34.34 MnT in FY19 in comparison with 55.17 MnT in FY18.
Irregularity in the occurrence of monthly spot auction was a major flaw that was seen among various subsidiaries of CIL. Notably, SECL, the largest coal producing subsidiary of CIL, had conducted spot auction only 4 times since July last year.
In total, CIL had supplied 488 MnT coal to the power sector in FY19, which had helped it to breach the 600 MnT mark in terms of coal dispatch for the first time.
While, the quantity of coal dispatch to the non-power sector comes out at 120 MnT, which was 5% lower on the year from 126.3 MnT in FY18.
Summary of other e-auctions:
CIL’s special forward e-auction earmarked for power sector, had seen allocation of 27.14 MnT coal in FY19. Sales in this auction were down 6% Y-o-Y from 28.93 MnT in FY18.
Sales of coal in Exclusive e-auction had marginally increased to 11.36 MnT in FY19, in comparison with 11.11 MnT in FY18.
There was a remarkable growth in quantity allocated in special spot e-auction, wherein a total of 3.58 MnT coal was allocated in FY19 as against 0.7 MnT in FY18.
It is pertinent to note that CIL had discontinued its “Forward e-auction” in FY18.
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