Mahanadi Coalfields Ltd (MCL), the subsidiary of CIL operating in the state of Odisha, has kept the same reserve coal prices for the spot auctions of Feb’18. The company has set reserve price of coal at 20% higher than the corresponding notified price, while offering 15.36 LT (Lakh Tonne) coal in the spot auction to be held on 13 Feb’18.
During Jan’18, CIL had empowered its subsidiaries to fix the reserve prices according to the market conditions, thereby lifting the upper cap of 20%. However, MCL not only has kept the prices unchanged, but also has raised the offered coal quantity for the Feb’18 auction. The coal company had offered 12 Lakh Tonne coal in the spot auctions of Jan’18.
MCL Coal Offers for Feb’18 Spot Auctions
| Source | Grade | Size | Quantity Offer | Notified Price | Reserve Price | % Increase in Reserve Price over Notified Prices |
| Talchar | G7 | -100 mm | 0.05 | 2311 | 2774 | 20% |
| Nandira | G8 | -100 mm | 0.06 | 1757 | 2109 | 20% |
| Orient-2 | G9 | Steam | 0.45 | 1638 | 1966 | 20% |
| Orient-3 | G9 | Steam | 0.05 | 1638 | 1966 | 20% |
| HBI | G10 | Steam | 0.4 | 1498 | 1798 | 20% |
| Samleshwari | G12 | Steam | 0.5 | 1333 | 1600 | 20% |
| Hingula | G12 | Steam | 1.5 | 1333 | 1600 | 20% |
| Jagannath | G12 | -100 mm | 1 | 1063 | 1276 | 20% |
| Lingaraj | G12 | -100 mm | 1.2 | 1063 | 1276 | 20% |
| Belpahar | G13 | Steam | 0.15 | 1250 | 1500 | 20% |
| Hingula | G13 | -100 mm | 3 | 980 | 1176 | 20% |
| Balram | G13 | -100 mm | 1.5 | 980 | 1176 | 20% |
| Bharatpur | G13 | -100 mm | 1.2 | 980 | 1176 | 20% |
| Ananta | G13 | -100 mm | 0.3 | 980 | 1176 | 20% |
| Belpahar | G14 | -100 mm | 1.4 | 897 | 1077 | 20% |
| Kaniha | G14 | -100 mm | 2.6 | 897 | 1077 | 20% |
Source: MCL
Quantity in LT (Lakh Tonne)
Prices in INR/MT
MCL had also reversed its decision to cut coal supply for the Non-power sector in quick time. The company had imposed a supply cut of 20% for Non-power consumers lifting coal through Rail mode in Feb’18. However, days later, the Non-power consumers were informed that they can receive their full quota of coal supply for the month.
The decisions taken by MCL can be seen as an effort to increase coal supplies to the Non-power sector. MCL was the largest coal producing subsidiary of CIL in Jan’18, with total output of 14.69 MnT during the month. Coal production had increased 9% M-o-M from 13.49 MnT in Dec’17, which were also 5% higher on the year compared with 13.96 MnT in Jan’17.
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