Indian Oil Corporation Ltd. (NSE: IOC), the country’s second-largest producer of petroleum coke, has announced online auctions of RPC (raw petroleum coke) from two of its refineries.
The auctions are scheduled on 19th Sep’20 for intrastate consumers. Re-auctions for the leftover quantities, if any, will be conducted on 21st Sep’20 for outside-state consumers.
| State | Refinery | Quantity Offered
Within-State (t) |
Date of Auction
Within-State |
Date of Auction
Outside-State |
| Bihar | Barauni (Gr.A) | 15,302 | 19th Sep’20 | 21st Sep’20 |
| Assam | Digboi (Gr.A) | 4,000 | 19th Sep’20 | 21st Sep’20 |
| TOTAL | 19,302 | |||
Salient features of the auctions are enumerated as follows:
i) Delivery periods for both within-state and outside-state e-auctions will be for 45 days. Accordingly, intrastate despatches will commence from 21st Sep’20 till 4th Nov’20; while for outside-state, it will be from 24th Sep’20 to 7th Nov’20.
ii) Eligible bidders are required to submit earnest money deposit (EMD) amounts to IndianOil’s service provider, MSTC Ltd.
iii) Outside-state bidders are required to make pre-bid EMD payments, according to terms of the auction.
Notably, this upcoming round of pet coke e-auctions have been scheduled within 12 days of the last round of e-auctions, which were completed on 8th Sep’20.
The quantities being offered in these auctions are the leftover quantities from the previously conducted e-auctions at IndianOil’s Barauni and Digboi refineries.
However, a quantity of 21,300 t was also left unsold at Koyali refinery but the same has not been put on auction, possibly because of poor demand due to quality issues at Koyali.
Market participants are expecting that reserve prices may be reduced to attract bidders, in consideration of the poor responses received in the last round of e-auctions.
Besides, the degraded quality of pet coke, particularly with high silicon (Si) content, being produced by Barauni refinery can turn buyers off.
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