Coal news and updates

Power Sector procures only 0.176 mt coal in MSTC’s May e-auction

June 23: The power sector consumers directly procured only around 1.76 lakh tons of coal in May 2014 through various auctions conducted by subsidiaries of Coal India Ltd (CIL) on e-auction platform of MSTC, according to information available with ICMW.

A total of 14.56 lakh tons of coal was allotted through all the e-auctions held on MSTC platform, while the offered quantity was 15.49 lakh tons through five subsidiaries – BCCL, CCL, ECL, SECL and WCL.

Of the total offered quantity, the maximum quantity or 6.99 lakh tons was allotted to traders. The allotment to traders was a staggering 48% of the total allotted quantity of 14.56 lakh tons.

Incidentally, traders generally procure coal through e-auction and then re-sale it to actual consumers after charging some commission for their services. The traders also take responsibility of loading and unloading of coal at consumers end against a charge.

The second highest quantity of 3.24 lakh tons was allotted to “other” sectors, except cement, sponge iron and power. In terms of percentage, the allotted quantity to “other” sector was 22%.

Cement sector too was allotted 1.76 lakh tons of coal or almost equal to the quantity allotted to power sector whereas sponge iron sector procured only 0.81 lakh tons of coal through e-auction platform of MSTC in May, which was only around 6% of the total allotted quantity.

Following is the detailed break-up of sector-wise allotted quantity of coal in May 2014 via MSTC platform: