South Eastern Coalfields Ltd (SECL) has witnessed subdued sales of coal being offered in the auction, which was specifically conducted for the power producers on 20 Apr’20.
The sales termed as the phase IV of special forward e-auction for FY20 was originally scheduled to be held on 30 Mar’20, but, because of unavoidable circumstances due to corona-virus outbreak, it was deferred till April.
The auction had involved sale of G11 grade of coal offered from Junadih colliery, whose reserve price was kept at a discounted rate of INR 955/MT, in line with CIL’s directive to affix floor price same as the notified price for various auction schemes.
However, as a consequence of dull market conditions, only 51% of the offered volume accounting to 502,326 MT was booked, that too at the base price. Notably, availability of adequate stock at their premises and lower electricity demand restricted the power producers from lifting additional quantity being offered.
| Colliery | Grade | Offer Quantity | Booked Quantity | Notified Price | Reserve Price | Bid Price |
| Junadih | G11 | 977394 | 502326 | 955 | 955 | 955 |
Source: CoalMint Research
Quantity in MT
Prices in INR/MT
As a desperate measure to clear-off the excessive coal stock at mines, CIL has advised its subsidiaries to sell off the extra material via auctions. Up next, SECL has notified that it would conduct phase I of special forward auction for FY21, wherein 3.856 MnT of G11 coal would be again put up for sale on 29 Apr’20.
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