NCL’s coal allocation under auction for power sector rises 29% in Jun’20

Northern Coalfields Ltd (NCL) has recorded a jump of 29% in coal volume sold under special forward e-auction concluded on 19 Jun’20.

The company has managed a to sell 644,000 t coal in the current auction against 500,000 t noted in previous term, as buying activity strengthened amid rise in power demand post lock-down. However, no such improvement was seen in bids received for the allocated coal which was procured with ease at the base price.

It is important to note that this was the second phase of special forward auction initiated by the company, where 1,400,000 t was offered for three months i.e. from Jun’20 to Aug’20. Prior to this, the first phase of auction involving 1,440,000 t coal was conducted in Apr’20 for a period of two months (Apr’20-May’20).

Unlike spot auctions, the special forward auction allows the bidders to declare the distribution of allocated quantity, which they wish to lift against a particular month within the stipulated period as per their consent.

E-Auction summary:

(a) The company had offered 200,000 t coal each from its seven different collieries. However, barring Jayant colliery, rest of the lot reported unsold quantity left-over at the end of auction process.

(b) Coal offered from Krishnashila and Jhingurdah collieries received no bids in the auction. Incidentally, no takers were reported for coal offered from Krishashila in the previous term as well.

Source: CoalMint Research
Quantity in t
Prices in INR/t

Upcoming auction:
NCL has notified that sale of 230,000 t coal comprising G5, G8 and G10 grades would be carried out in the next spot auction scheduled on 26 Jul’20.