Coal India registers 77% growth in e-auction sales in Apr-Nov

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Coal India Ltd (CIL) has logged 77% growth in e-auction sales in April-November of the current fiscal, booking 68.3 Million Tonnes (MTs). The upsurge in the booked or allocated quantity of coal was close to 30 MTs in absolute terms, compared to 38.6 MTs booked during the same period a year ago, a company official…

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Coal India Ltd (CIL) has logged 77% growth in e-auction sales in April-November of the current fiscal, booking 68.3 Million Tonnes (MTs). The upsurge in the booked or allocated quantity of coal was close to 30 MTs in absolute terms, compared to 38.6 MTs booked during the same period a year ago, a company official said.

Exclusive auction for non-power consumers booked 17.4 MTs which is 25.5% of the total allocated quantity during the period. Compared to 4.8 MTs booked by non-power consumers during April-November last year, the growth is 262%. E-auction sales for November 2020 witnessed improved volume bookings at 9.4 MTs, clocking 23.7% growth over last November, helping CIL net 30% premium over the notified prices.

The company earned a 13% premium through auctions in October 2020 when CIL.

‘Special spot auction for coal importers’ also gained positive response with 3.3 MTs booked in November’20 with a premium of 21%. The quantity is twice that of 1.6 MTs booked in October, the first occasion CIL introduced this window when the premium fetched over notified price was 14%.

“For now the focus remains on volume expansion in e-auction sales rather than add-ons over the reserve price. Going forward add-ons will be pliable based on subsidiary wise and grade wise demand,” the official said. The demand from the non-power sector is on the up and there is scope for further increase. Till the demand from the power, sector strengthens and stabilizes, CIL is eyeing sponge iron, captive power plants, cement and aluminium sectors.

However, given the power sector’s 80% share in CIL’s total off-take programme, it will not be feasible for the non-power sector to offset demand shortfall from the power sector fully. To ramp up volume despatches and substitute imported coal with domestic coal. CIL has communicated with over 300 coal importers seeking their requirement from domestic sources.

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