Friday, September 30, 2022

CIL sees 65% rise in coal allocation under e-auction in H1 of FY21

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  • CIL booked 41.4 million tonnes (MT) raw coal in e-auctions during April-September 2020

  • In volume terms, the booked quantity under spot e-auction was the highest at 16 MT during the first half of 2020-21 clocking a growth of 43 percent

New Delhi: Coal India Ltd (CIL) has recorded a jump of 65 percent in the total coal allocation under its four e-auction windows in the first half (H1) of the current financial year. CIL booked 41.4 million tonnes (MT) raw coal in e-auctions during April-September 2020, compared with 25.1 MT booked in the corresponding period last fiscal, the company said in a statement on Tuesday. The increase in volume terms stood at 16.3 MT, it added.

With the industrial and commercial activities reviving after the unlock, CIL is hopeful that the demand sustains and the sales get boosted soon. With no dearth of coal, the company is confident of meeting the increased demand, it said.

CIL put more thrust on auction sales in line with Aatmanirbhar Bharat Abhiyan

After the last year’s coal import trend showed that 40 percent of the imports of dry-fuel were by traders, CIL decided to give more thrust on auction sales that resulted in higher volumes. This is also in line with the government’s push on ‘Aatmanirbhar Bharat’ in the energy sector, it said.

“Even with the pandemic slowdown, CIL could net 10 percent average premium over notified value in the first six months of the current fiscal as compared to 48 percent of the same period year, but the aim was to increase volume supplies,” the company said.

It added that the company anticipated the liquidity crunch that COVID-19 would bring to its customers and brought down the reserve price close to zero to help them lift more coal during the lockdown phase. In the two tranches of three months each, CIL kept down its reserve price beginning April till September.

October strategy for e-auction

After the company’s board has given its nod, CIL for its October auctions has injected a rise in reserve price ranging from zero up to a maximum of 10 percent 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.

16 MT coal booked under spot e-auction during H1 of FY21

In volume terms, the booked quantity under spot e-auction was the highest at 16 MT during the first half of 2020-21 clocking a growth of 43 percent, compared with 11.2 MT booked in the April-September period of last fiscal. Spot e-auction is meant for both regulated and non-regulated customer base. It was followed by 13.4 MT booked in exclusive auction for non-power consumers.

Special forward auction for power producers bagged 10 MT, while special spot auction yielded 2 MT during the period. With the power sector having 34.2 MT coal stock sufficient for 19 days and no plant in critical condition for want of coal at September-end, CIL could focus on the non-power segment where the response from exclusive non-power e-auction was rousing in growth terms with almost a five-fold jump.

ALSO READ: Coal India surpasses its capex target for H1 FY21 at Rs 5,023 cr

“Exclusive auction for non-power consumers during the referred period at 13.4 MT was up by 11.1 MT, against 2.3 MT that this sector booked last year in the corresponding period. In the growth terms, the rise is a whopping 482 percent,” it said. The power sector showing signs of recovery and registering double-digit growth in the first week of October bodes well for us to ramp up our sales, the statement said. The power sector is CIL’s major coal-consuming customer accounting for around 80 percent of its entire sales.

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