Mahanadi Coalfields Ltd (MCL), one of the largest coal producing subsidiary of CIL, operating in Odisha, has recently concluded its Exclusive e-auction coal sales entitled for the non-power sector (including captive power producers).
The current scheme was the second phase of the auction for the FY19, noted for Jan’19-Mar’19 period. The auction entitles the buyers to lift the acquired coal quantity over a longer period of lifting time (3-months in this case) as per their requirement.
As per primary sources, MCL’s current auction had witnessed a strong response from the non-power fraternity, wherein entire offered quantity was sold, and also yielding higher premiums. Notably, only 26% of the total coal was booked at the base price.
The company had offered a total of 1.5 MnT coal, comprising of three grades namely G12, G13, and G14 from its 11 coal mines.
A grade-wise break-up indicates that G13 coal accounted for the highest quantity being offered in the auction, marked at 750,000 MT; followed by G12 coal grade offering 450,000 MT and remaining 300,000 MT belonged to G14 grade of coal.
| Source | Grade | Base Price | Avg Bid Price | Quantity Sold |
| Lingraj OCP | G12 | 1170 | 1175.45 | 150000 |
| Bhubaneshwari OCP | 2127.25 | 100000 | ||
| Jagannath OCP | 2338.76 | 100000 | ||
| Ananta OCP | 1887.07 | 100000 | ||
| Hingula OCP | G13 | 1078 | 1085.3 | 400000 |
| Balaram OCP | 1091 | 150000 | ||
| Bharatpur OCP | 1772.25 | 100000 | ||
| Lajkura OCP | 2724 | 100000 | ||
| Lakhanpur | G14 | 987 | 1548 | 100000 |
| Belpahar OCP | 1809.5 | 100000 | ||
| Samleshwari OCP | 1136 | 100000 | ||
| Total | 1500000 | |||
Source: CoalMint Research
Prices in INR/MT
Quantity in MT
For G12 grade of coal, the highest average bid price of INR 2338.76/MT was noted against a base price of INR 1170/MT, from Jagannath colliery.
For G13 grade of coal, the highest average bid price was INR 2724/MT was noted against a base price of INR 1078/MT, from the Lajkura colliery.
As a matter of fact, the collieries offering highest coal quantity had recorded lowest bid prices in case of G12 and G13 coal.
However, all the 3 collieries in case of G14 grade of coal had offered the same amount, among which highest price of INR 1809.5/MT was recorded from Belpahar colliery.
In total, MCL’s present auction had recorded average bid price of INR 1538.91/MT against a base price of INR 1087.4/MT, fetching an overall premium of 41.52%.
Major Coal Receivers: Jindal Power & Steel, Vedanta, NALCO, and Hindalco Industries emerged as the largest coal receivers in the auction, which had taken nearly 77% of the total quantity.
Apart from the major players, active participation from various Steel, Ferro alloy and Captive power producers was noted as well.
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