- The sale volume was 30.2 million tonnes (MTs) against 15.9 MTs of the first quarter last fiscal
- With international coal prices spiralling upwards with no signs of let up, consumer preference for domestic coal is seemingly gaining ground
New Delhi: With the demand for coal slowly rebounding, Coal India Ltd’s (CIL) actual e-auction net sales was over Rs 4,700 crore during Q1 FY 2021-22, posting 87 percent year-on-year jump, said CIL in an official statement on Thursday. The sale volume was 30.2 million tonnes (MTs) against 15.9 MTs of the first quarter last fiscal, when the pandemic slowed down the sales. CIL’s e-auction allocation at 35.5 MTs during April-July 2021-22, under five auction categories, spiked up by nearly 8 MTs, registering a sharp 28.6 percent over the same period a year ago, when the allocation stood at 27.6 MTs.
Spiralling global prices boost demand for domestic coal
With international coal prices spiralling upwards with no signs of let up, consumer preference for domestic coal is seemingly gaining ground. The effect of ascending cost of coal sourced from overseas was evidenced in the country’s coal importers booking 70 percent of the total quantity of 2.4 MTs offered to them under their special spot e-auction during April-July 2021. The add-on over the notified price under this category was 52 percent.
Interestingly, for the month of July, almost all the quantity of 1.6 MTs offered to coal importers under exclusive special e-auction window was booked, said the statement. Under exclusive auction for non-power consumers the allocation was 11.8 MTs during the first four months of the current fiscal, logging around 69 percent growth. It would help consumers of this segment in increasing their blending percentage and cap the coal cost in production of their respective products. Last year same period, 7 MTs was booked by them.
Power sector clocks 37.5% growth under special forward auction
The power sector, as well, clocked 37.5 percent growth under special forward auction at 11 MTs during the referred period. Quantity booked by this sector in the same period last year was 8 MTs. For the month of July, CIL allocated a total volume of 8.3 MTs with a month-on-month rise of 2.5 MTs compared to 5.8 MTs of June. Auction bookings in a month grew by 43 percent. Compared to July of last year, the allocation was up 9 percent.
Premiums over notified value are improving with revival in coal sales. Enhanced volume sales coupled with add-ons would lead to a positive impact on the company’s bottom line.
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