- 5.7 mnt non-coking coal offered
- Higher domestic coal supply may reduce import dependence
India’s coal linkage auction activity on the MSTC platform witnessed renewed momentum with multiple non-coking coal parcels offered by Coal India Limited (CIL) across various subsidiaries and grades in May’26. The latest auction schedule highlights the continued efforts of the miner to streamline coal allocation to industrial consumers amid sustained domestic demand from the power, sponge iron, cement, and captive industrial sectors.
The auction primarily featured non-coking coal grades from major producing regions including Mugoli, Tetarikhar, Bharatpur, Madhuban, Bhubaneswari OCP, and Dipka. Offered quantities ranged from smaller lots of 10,000 tonnes to large-volume parcels of up to 1.5 million tonnes, indicating strong availability across selected grades and subsidiaries.
Among the key offerings, G15 (-100 mm to -250 mm) Mugoli coal accounted for the highest quantity at 1.5 million tonnes, while Bhubaneswari OCP MCL accounted G12 (-100 mm) non-coking coal also recorded sizeable allocations of 1.5 million tonnes. Other grades such as G10, G11, and G12 were also included in the auction basket, catering to varied industrial consumption requirements.
The scheduled auctions, conducted through the MSTC platform, are expected to attract participation from a wide spectrum of consumers seeking assured domestic coal supply amid fluctuating seaborne coal prices and elevated import replacement costs. Market participants continue to prefer linkage and auction-based domestic coal procurement due to pricing stability, supply security, and reduced exposure to international freight and currency volatility.
The increased auction activity also aligns with the government’s broader objective of enhancing domestic coal availability and reducing import dependence. With summer power demand remaining elevated and industrial activity stable, domestic coal auctions are likely to witness sustained buyer interest in the near term.
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