- Lower-grade G13-G14 coal dominates upcoming auction
- Premium G8 coal likely to attract stronger bidding
Mahanadi Coalfields Ltd (MCL) has notified 3.467 million tonnes (mnt) of non-coking coal for its Single Window Mode Agnostic (SWMA) e-auction scheduled on 21 July 2026. The offer is marginally lower than the 3.48 mnt notified in the previous auction held on 11 July. The auction comprises coal from major opencast and underground mines through both road and rail modes, covering grades from G7 to G14, along with washery rejects.
G13 and G14 account for majority of offers
Lower-grade coal continues to dominate the auction catalogue. LBL Integrated mine has offered the highest quantity of 751,500 t of G14 coal, comprising 747,500 t through road mode from LBL Integrated and 4,000 t through rail mode from LBL Rail Siding (LBLS), at a notified price of INR 930/t.
Samleswari has notified 495,500 t of G14 coal, including 491,500 t through road mode from Samleswari and 4,000 t through rail mode from Lakhanpur Rail Siding (LKPR). Similarly, Hingula has offered 483,700 t, comprising 479,700 t through road mode from Hingula and 4,000 t through rail mode from Hingula Rail Siding (HNGR). Garjanbahal opencast mine has notified 304,000 t of G14 coal, comprising 300,000 t through road mode from Garjanbahal and 4,000 t through rail mode from Garjanbahal Rail Siding (GBRS). In addition, HBM has offered 50,000 t of G14 coal, with the entire quantity available through road mode. All G14 coal carries a notified price of INR 930/t.
Among the G13 grades, Kulda has offered 300,000 t, comprising 200,000 t through road mode from Kulda mine and 100,000 t through rail mode from Laikera Rail Siding (MCFL). Lajkura has also notified 300,000 t, including 296,000 t through road mode from Lajkura mine and 4,000 t through rail mode from LOCM 3 Rail Siding (LOCM).
Orient underground mine has offered 49,900 t, entirely through the road mode from Orient 2 mine. All G13 coal has a notified price of INR 1,016/t. Together, G13 and G14 account for the largest share of the total auction quantity.
G11 and G12 offered in sizeable quantities
MCL has also notified significant volumes of mid-grade coal. Siarmal has offered 255,000 t of G11 coal, comprising 251,000 t through road mode from Siarmal mine and 4,000 t through rail mode from Sardega Rail Siding (MCGB), at a notified price of INR 1,184/t.
Meanwhile, Ananta has offered 104,000 t of G12 coal, including 100,000 t through road mode and 4,000 t through rail mode from Spur-5 Rail Siding (ACTR). Bhubaneswari has also notified 104,000 t, comprising 100,000 t through road mode from Bhubaneswari mine and 4,000 t through rail mode from Bhubaneswari Silo (SJWT). All G12 coal carries a notified price of INR 1,101/t.
Premium grades available in limited quantities
Higher-grade coal forms only a small part of the auction. Kulda-G8 OCP has offered 50,000 t of G8 coal through road mode from Kulda opencast mine, at a notified price of INR 1,931/t.
Meanwhile, Nandira underground mine has notified 10,000 t of G7 coal and 5,000 t of G8 coal, both offered entirely through the road mode from Nandira mine, at notified prices of INR 2,540/t and INR 1,931/t, respectively.
In addition, LBL integrated opencast mine has offered 4,400 t of G10 coal, comprising 400 t through road mode from LBL Integrated OCP and 4,000 t through rail mode from LBL Rail Siding (LBLS), at a notified price of INR 1,360/t.
Washery rejects included
Apart from thermal coal, MCL has also offered 200,000 t of washery rejects with a GCV range of 1,500-1,899 kcal/kg from IB Valley Coal Washery. The entire quantity will be dispatched through the road mode from IB Valley Coal Washery, at a notified price of INR 507/t.
Road mode continues to dominate dispatch
Road transportation accounts for the majority of the 34.67 lakh t offered in the auction, with rail dispatch limited to 4,000 t lots from selected railway sidings. The large-volume offerings from LBL Integrated, Samleswari, Hingula, Garjanbahal, Kulda, Lajkura, Siarmal, Bhubaneswari and Ananta mines are primarily available through the road mode, while rail provides additional evacuation options for bulk consumers.
Market implication
The previous MCL auction held on 11 July recorded an allocation of only 768,300 t against an offered quantity of 3.48 mnt, resulting in an absorption rate of around 22%, indicating cautious buying amid comfortable domestic coal availability and weak industrial demand during the monsoon.
Against this backdrop, the upcoming auction is also expected to witness selective, requirement-based procurement. The large availability of G13 and G14 coal is likely to keep premiums under pressure, as these grades have generally attracted limited bidding interest in recent auctions.
In contrast, G8 coal is expected to continue receiving strong buyer interest after securing full allocation and the highest premium in the previous auction. G12 coal may also attract healthy competition, supported by firm demand from power and industrial consumers. Overall, bidding is expected to remain measured, with stronger competition for premium grades and moderate interest in the abundant lower-grade coal.
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