Bid premium at spot auctions conducted by Coal India Ltd (CIL) in January, 2023 stood at 182%, almost stable m-o-m after falling in December, 2022. The bid premium over the notified price was assessed at 179% in December while the premiums were 241% in November.
In comparison to last year, the bid premium has dropped as against the levels of 232% recorded for sales against spot auctions in January, 2022. However, it was still higher compared to 103% while considering sales via different auction schemes in January 2022.
It is important to note here that coal sales via auctions were conducted under different sector-based schemes before March, 2022. After that these auctions were clubbed into single window mode of sales.
The drop in premium in comparison to spot auctions, which was the most preferred mode of sale, indicate gradual recover in supply resulting in lower bid prices.
Offerings drops in Jan’23
In December 2022, all the subsidiaries of the CIL had conducted auctions. However, Northern Coalfields Ltd (NCL) and Mahanadi Coalfields Ltd (MCL) were notable absentees in January, 2023.
This has resulted into 44% m-o-m fall in coal offering in January, 2023. Coal offered in auctions in January, 2023 was 3.2 mnt. During December, 2022 it was 5.9 mnt.
Notably, almost the entire quantity offered in the e-auction in January was booked at INR 1,771 crores.
Subsidiary-wise analysis
Except South Eastern Coalfields Ltd (SECL), the subsidiaries that conducted auction in January, 2023 had seen a drop in bid premiums.
In case of Bharat Coking Coal Ltd, Central Coalfields Ltd, Western Coalfields Ltd and North Eastern Coalfields Ltd, bid premium dropped amid low demand of coal and abundance of supply.
However, SECL bid premium increased from 180% in December, 2022 to 278% in January 2023 because of hefty procurement from power sector. The subsidiary has offered majority of low-grade coal used in power sector. In addition, there was an increase in procurement from neighbouring state of Odisha as MCL had not conducted an auction in the said period.
Bid premium surges in Apr’22- Jan’23
CIL’s bid premium in the spot e-auction over the notified price was 278% in April 2022-January 2023. However, the bid premium for auctions during April 2021-January 2022 was 63%. This surge is the result of drop in coal offerings.
Notably, CIL’s coal sales via e-auctions during April, 2022-January, 2023 were at 40.2 mnt. It was 74% less as compared to the quantity offered via auction during the last year same period.
Leave a Reply