Team News Riveting
The total coal allocation of the state-run Coal India Limited (CIL) under its four e-auction windows had logged a robust 65 per cent rise during the first half of the ongoing fiscal compared to previous year’s corresponding period.
Last year’s coal import trend revealed that 40 per cent of coal imports were by traders. CIL decided to give more thrust in auction sales which resulted in higher volumes. This is also in line with the government’s push on ‘AtmaNirbhar’ in the energy sector.
CIL booked 41.4 Million Tonne (MTs) raw coal in e-auctions during April-September’20 compared to 25.1 MTs booked in the corresponding period last fiscal. The increase in volume terms was 16.3 MTs. With the industrial and commercial activity reviving post unlock, CIL is hopeful that the demand would sustain and the sales would boost soon.
With no dearth of raw material, the country’s largest coal producing company is confident of meeting the increased demand.
“Even with the pandemic slowdown, CIL could net 10 per cent average premium over notified value in the first six months of the current fiscal compared to 48 per cent of the same period year, but the aim was to increase volume supplies” said a senior official of the company.
The reserve price was brought down close to zero as the company anticipated liquidity crunch following COVID-19 to help lifting more coal during the lockdown phase, the official added. In two tranches of three months each, CIL kept down its reserve price beginning April till September.
After the company’s Board has given its nod, CIL for its October’20 auctions has injected an increase in reserve price ranging from zero upto a maximum of 10 per cent over the notified price, as a dipstick survey to gauge the market response. Based on the market reaction and the premium fetched from sale prices the company will decide on reserve price for November ’20.
In volume terms, the booked quantity under spot e-auction was highest at 16 MTs during H1 FY ’21 clocking a growth of 43 per cent compared to 11.2 MTs booked in April-September 19. Spot e-auction is meant for both regulated and non-regulated customer base.
It was followed by 13.4 MTs booked in an exclusive auction for non-power consumers. Special forward auction for power producers bagged 10 MTs while special spot auction yielded 2 MTs during the period.
With the power sector sated having 34.2 MTs coal stock sufficient for 19 days and no plant in critical condition for want of coal at September’20 end, CIL could focus on non-power segment where the response from exclusive non-power e-auction was rousing in growth terms with almost a five-fold jump.
Exclusive auction for non-power consumers during the referred period at 13.4 MTs was up by 11.1 MTs against 2.3 MTs—a rise of whopping 482 per cent compared to previous year.
