while unlinked projects may need a further 50 mt. This puts the total need of the power sector at 520 mt in the current year. But with several projects that need coal only in the next fiscal, sources said a diversion of 30 mt e-auction coal this year would suffice.
At present, the average price of coal that CIL is selling is notified at R1,600 per tonne. While average realisation of e-auction in 2013-14 was at R2,200 per tonne, the price of e-auction of coal last year fell from R2,600 per tonne in the previous year.
India's monolithic coal producer CIL, which is allowed to sell 10% of the output through e-auction has found this route highly lucrative with around 20% of its revenue coming from this business.
The contribution of spot sales or e-auction to CIL's overall revenues has seen a sharp rise from 11.9% in 2007-08 to 17.5% in 2010-11. Ever since, due to a fall in global coal prices, its contribution to CIL's total revenue has fallen, but it still stands in two digits.