Mahanadi Coalfields Ltd (MCL), the subsidiary of CIL operating in Odisha, has concluded exclusive auction held on 11 Aug ’20. The auction earmarked specially for non-power sector had offered 4,200,000 t coal for sale, of which 3,198,000 t was booked.
In order to deal with excess coal stock at mines, the company has subsequently raised the offer volume in this auction scheme. Notably, it was the third phase of auction conducted in the current fiscal.
With gradual pickup in demand, the auction witnessed highest allocation since Apr ’20, which surged 111% from the previous term wherein 1,516,650 t coal was sold. However, in the absence of adequate competition, coal was procured at relatively cheaper prices.
Apart from G12 grade of coal, remaining volume was booked almost at the base price. Overall, an average price realization of INR 945.53/t was fetched for the booked quantity, which gained a modest growth of 1% over the assessed reserve price of INR 934.14/t.
| Grade | Quantity Offered | Quantity Booked | Reserve Price | Bid Price |
| G12 | 1,100,000 | 1,040,000 | 1063 | 1095.92 |
| G13 | 600,000 | 148,000 | 980 | 980.00 |
| G14 | 2,100,000 | 1,660,000 | 897 | 898.02 |
| G15 | 400,000 | 350,000 | 708 | 709.43 |
| Total | 4,200,000 | 3,198,000 | 934.14 | 945.53 |
Quantity in Metric Tonne (t)
Prices in INR/t assessed on basis of booked quantity
Source-wise results:
Highest bid price of INR 1145/t was received for G12 grade from Spur III/IV siding. In addition, the same grade offered from other Spur sidings had also garnered premium of INR 42-45/t, whereas coal from remaining lot was acquired at the base price. (Detailed source-wise results can be seen here).
G13 was the least preferred grade in the auction, wherein only 25% of the offered material was sold. Moreover, like the previous auction held in May ’20, no bids were seen for Spur VII/VIII and Hingula collieries.
Nevertheless, the number of such unsold lots in the current auction was reduced to two as against five recorded in the previous term.
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