Coal India plans to offer an additional 21.5% coal to power sector in FY20
The coal producer is planning to offer 33 million tonnes of coal via forward e-auctions in 2019-20 as opposed to 27.14 million tonnes in 2018-19
June 14, 2019
State-run Coal India Limited (CIL) is going to offer an additional 21.5 percent coal to power generators through forward e-auctions in financial year 2019-20 and cut down offerings in the spot auction market by almost 4 percent over the last fiscal. A senior official said that the coal producer is planning to offer 33 million tonnes (MT) of coal via forward e-auctions in 2019-20 as opposed to 27.14 million tonnes in 2018-19.
The public sector undertaking (PSU) is planning to offer about the same quantity of coal via spot auctions market, down from the 34.34 million tonnes it offered in FY2018-19.
The figures for power and non-power sector
For the non-power sector, Coal India plans to offer 64 million tonnes of additional coal for long-term supply contracts through an auction mechanism, the official said. The rest of the coal, about 530 million tonnes, will go to power generators with long-term supply contracts.
Option to lift coal in portions?
In forward auctions, successful bidders will have the option of lifting their allotted quantities of coal in portions over at least two years. This will offer power producers a secured source of coal for the period. Only power producers are allowed to participate in forward e-auction. Spot auction market will, however, be open to all.
Auction calendar 2019-20
A calendar prepared by Coal India for special forward auction in FY2019-20 showed that the highest quantity of 8.5 million tonnes will be offered by Coal India subsidiary South Eastern Coalfields, followed by Mahanadi Coalfields at 8 million tonnes. Northern Coalfields is slated to offer about 5 million tonnes, while Central Coalfields will be offering 3.85 million tonnes. Western Coalfields plans to offer 2.9 million tonnes.