Mining behemoth Coal India (CIL) has said the ongoing coal linkage e-auction for captive power plants (CPPs), a mechanism of coal supply for the consumers of non-regulated sector, has received “rousing” responses so far.
The linkage auction, for long-term coal supplies to captive power plants, started on July 30, and during the first five days, almost the entire quantity of 13.43 million tonne (mt) of coal, offered till then, was booked by the CPP consumers. At the end of Day 5 on July 30, 12.95 mt was booked, yielding good premium over the notified price. The auction for CPPs will come to closure on August 3.
Coal India is hopeful that the total quantity of around 18 mt of coal put on the block for CPPs would have an overwhelming response when the auction is closed on Wednesday. According to CIL, barring Amrapali of Central Coalfields (CCL) — where logistics constraints witnessed less booking coupled with the fact haulage distance is more as there are no CPPs in proximity — the response to the auction has been encouraging. The company had conducted linkage auctions for coal to be used for sponge iron manufacturing and for the cement sector.
Meanwhile, the miner said its coal production for the period April-July this year stood at 162.38 mt, registering a growth of 4% year-on-year. For the month of July, it clocked coal production of 36.74 mt, a 5.5% y-o-y growth compared to same period a year ago. Coal offtake during the first four months of the current financial year was 174.66 mt, registering a growth of 2.6% y-o-y. Coal offtake stood at 41.47 mt during the month of July, recording a modest growth of 1.4%.
The miner said coal stocks at coal-fired power utilities of the country continue to be high at around 31 mt (as of July 28, 2016) with a comfort of 23 days stock with no station at critical or super-critical level. The power utilities were able to reduce their stock by 8.09 mt at their end since the beginning of the financial year.