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Coal India fetches 62% premium at spot auctions in October

For the period Apr-Oct, the company managed to command a premium of 67% over its notified prices on an average. At special forward e-auction for the power sector, CIL managed to sell coal at a premium of 39% over notified prices in October. For the Apr-Oct period, the company managed to command an average premium of 32% over notified prices.

, ET Bureau|
Nov 23, 2019, 10.15 PM IST
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Kolkata: Coal India has managed to command a premium of 62% premium over notified prices for coal sold through spot e-auctions conducted in October. During September the company managed to fetch 82% premium over notified prices for spot e-auctions.

For the period April-October, the company managed to command a premium of 67% over its notified prices on an average.

At special forward e-auction for the power sector, Coal India managed to sell coal at a premium of 39% over notified prices in October. For the April-October period, the company managed to command an average premium of 32% over notified prices.

There exclusive auction for the non-power sector, Coal India managed to command a premium of 32% for both October and the period April-October.

This year, Coal India intends to ramp up auction offerings by 14% against the previous year when similar supplies declined 5%. This year Coal India has decided to auction 137 million tonnes of coal which would include long term supply contract auctions, spot e-auctions and forward e-auctions.

Last year, the dry fuel supplier offered 120 million tonnes through similar auctions which was a 5% drop compared to the previous year (2017-18). Increased offerings this year is expected to bring down premiums which touched 92% in the spot market last year as availability through spot e-auctions had dwindled almost 38% among other reasons like higher international coal prices and Rupee depreciation.

Last year unforeseen demand from power generators forced Coal India to send them additional coal as the sector was grappling with dwindling inventory and many power plants were stranded with critical coal stocks. Last year, premiums for special forward e-auction for power and special spot e-auction was 72% while exclusive e-auction for non-power fetched 58% premium. The number of critical plants had touched 29 in October last year while stocks and dipped to 6 million tonnes.
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