CIL gets high premium from e-auction sales to coal importers

By: |
August 13, 2021 12:30 AM

Almost the entire 1.6 million tonne offered to coal importers in July was booked, giving an impetus to CIL to offer more quantity in this category.

The increasing cost of coal sourced from overseas meant that coal importers booked 70% of the 2.4 MT offered to them under the special spot e-auction during April-July.The increasing cost of coal sourced from overseas meant that coal importers booked 70% of the 2.4 MT offered to them under the special spot e-auction during April-July.

Coal India’s (CIL) special spot e-auction meant exclusively for coal importers fetched the company a 52% add-on over the notified price for the April-June period this fiscal, owing to soaring international prices that touched an average $146 per tonne across categories as of Thursday.

Almost the entire 1.6 million tonne offered to coal importers in July was booked, giving an impetus to CIL to offer more quantity in this category.

The increasing cost of coal sourced from overseas meant that coal importers booked 70% of the 2.4 MT offered to them under the special spot e-auction during April-July.

E-auction bookings across all five windows for the first quarter fetched the PSU miner `4,700 crore, with 30.2 MT sold via e-auction as against 15.9 MT booked during the same period last fiscal. Revenue from e-auction sales witnessed a year-on-year jump of 87%, a CIL executive said.

At 35.5 MT, the company’s e-auction allocation in the first quarter under all five auction categories was higher by nearly 8 MT or 28.6% than the allocation in the same period a year ago.

Under the exclusive auction for non-power consumers, the allocation was 11.8 MT during the first four months of the current fiscal, logging growth of around 69%. It will help consumers of this segment increase their blending percentage and cap the coal cost in production. Non-power consumers booked 7 MT during the same period last fiscal.

The power sector clocked 37.5% growth under the special forward auction at 11 MT during the reviewed period. The sector booked 8 MT during the corresponding period a year ago.

For the month of July, CIL allocated 8.3 MT compared to 5.8 MT in June. Auction bookings in a month grew by 43%. Allocations for e-auction in July this year were 9% higher than those in the same month last year.

“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,” a company executive said.

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