State-owned Coal India (CIL) may close the current fiscal, booking 120 million tonnes of coal for e-auction, the highest ever since coal sales began through the auction route. This is near double the bookings of 66 million tonnes made for e-auction last fiscal, surpassing the company’s earlier estimates of e-auction booking for the ongoing fiscal.
Coal India booked 13.1 million tonnes for e-auction during December this fiscal. Even if the same amount is booked each month for the remaining three months this fiscal, e-auction booking will cross 120 million tonne.
CIL booked around 11 per cent of its total production at 602 million tonnes, for e-auction in 2019-2020. If CIL is able to reach its production target of 660 million tonnes, e-auction bookings will be more than 18 per cent this fiscal.
According to a company official, CIL’s efforts to book increased volumes of coal under e-auction, paid off in bolstering sales revenue. In the Covid-induced pandemic add- ons over the notified price were narrowed down helping the company scoring a strong 76.2 per cent volume growth during the April-December period.
The PSU miner booked 81.4 million tonnes coal under five auction windows progressively up to December, displaying a robust 35.2 million tonnes volume expansion compared to 46.2 million tonnes it booked the same period a year ago. Beginning October of the current fiscal, CIL introduced special spot auction for coal importers, under which it had already booked 7.3 million tonnes in three months.
Premium over notified price has also been gaining steadily since October with CIL as whole netting a 15 per cent premium during April-December period. Among the subsidiaries, Eastern Coalfields clocked the highest 40 per cent increase over the notified prices followed by Central Coalfields and Bharat Coking Coal, registering 23 per cent and 22 per cent premium over the notified prices, respectively.
During December in the current fiscal there was a significant increase in bookings from power sector under special forward auction at 5.1 million tonnes compared to 0.5 million tonnes the same month a year ago. The December booking from the power sector this fiscal fetched a premium of 12 per cent.