Western Coalfields Ltd (WCL) received lukewarm reception as seen in the recent sales conducted by various CIL’s subsidiaries, but had managed noticeable bids in the spot auction concluded on 21 Apr’20.
The company had floated 676,000 MT coal from 20 different collieries, of which few lots had fetched average bids in excess of INR 200-350/MT over the reserve coal price. In contrast, almost the entire sold quantity in auctions conducted by CCL and SECL were booked at the base price.
Nevertheless, lower sales remained a reason of concern in the auction, wherein only 31% of the total offered volume was lifted by the buyers. Detailed results from the auction can be seen here.
Major inference drawn from the auction have been highlighted below:
(a) In line with CIL’s directives, WCL had kept the reserve price same as that of notified coal price, expect for specific sources which involves sizing charges for the offered coal. These include Sasti, Chattarpur-II, Tawa-II and Yekona-II collieries.
(b) Near-about 66% of the sold volume had fetched bids in excess of reserve price, including sale of entire quantity being offered from Sasti expansion, DRC, Kamptee and Gouri Collieries.
(c) Highest premium was received for G9G10 product mix of coal offered from Gouri colliery. The lot had received average bid price of INR 2156.93/MT against the reserve price of INR 1802/MT.
(d) Coking Coal Sale: The single lot of W4 grade put in for sale from Tandsi colliery had received tepid response, wherein only 30% of the material was sold at the base price of INR 3353/MT.
(e) No bids were recorded for 120,000 MT coal put forward from NMOC Colliery, for whom Rail was affixed as preferred mode of dispatch against the bid quantity.
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