Coal news and updates

CIL revises auction volume; targets non-powers cos

Coal India Ltd (CIL) will offer around 2.47 million tons (mt) of coal for the exclusive e-auction to non-power consumers, including captive power plants (CPPs). This is the second phase of the auctions and the same would be based upon the offer of coal companies for the balance period of the year 2015-16, ie, February and March.

However, this is a deviation from the earlier decision, as reported in ICMW on February 5, whereby Coal India Ltd (CIL) was to e-auction 5.5 mt through a special forward auction to power sector consumers through a special forward auction that was to be conducted in February and March, as commented by a company official.

Now, the volume stands revised downward to 2.47 mt and the fuel would be made available to non-power sector users, as stated above, instead of power companies.

The subsidiaries which are offering the coal are CCL, WCL, SECL and NCL respectively.

The highest volume of coal (1.10 mt) coal is being offered by CCL. Mainly steel and cement companies are the biggest non-power coal consumers.

Fig in mt

The successful bid quantity would be divided into two parts for determining the monthly scheduled quantities (MSQ) for coal supplies during the period.

The company had earlier offered 15 mt coal to power sector (10 mt) and non-power sector (5 mt) consumers in November 2015 in the first phase.

Of the total offering back then, around 9.5 mt had been booked by the consumers and the balance 5.5 mt had remained unsold.