Coal India Ltd (CIL) has introduced two major modifications in existing auction scheme, thus aiming to liquidate the surplus inventory and in turn generate fair amount of revenue from the coal sales.
The changes carried out pertain to fixing minimum bid quantity and bid price for different e-auction schemes.
* Separate auctions for different modes of dispatch
In the first of these changes, the company has proposed to conduct separate exclusive e-auctions accompanying mode-wise dispatches, even if the offered quantity is from the same source. Besides, minimum quantity for bidding has also been specified.
For road-mode of sale, the minimum quantity to be quoted for bidding would be 500 t. On the other hand in case of rail-mode, the minimum quantity will be one rake, with its size defined as per prevalent railway rules.
* Fixing bid price for coal sale
Also, carrying out alteration in clause 5.1 of exclusive/special forward e-auctions and clause 4.7 of spot/special e-auctions, the company has fixed bid price to be quoted for the underlying coal sales.
As per the new rule, the bidder would have to quote bid price in increment of INR 20/t or multiple thereof during the normal e-auction period. While, for auction conducted for extended period (viz. exclusive/special forward/special spot), bid price would be in increment of INR 50/t or multiple thereof.
The company has said that these amendments would be applicable in e-auctions conducted henceforth.
Rise in demand from non-power sector:
The alterations would help CIL to reduce the part loss incurred when the coal volume is sold at the base price and broaden its customer base among the non-power sector which has seen increased appetite for coal under these auctions.
During the first 8 months of FY ’21 (Apr-Nov ’20), coal allotted under exclusive auction earmarked specially for non-power sector has increased almost 4-folds to 17.40 mn t against 4.84 mn t in the year-ago period.
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