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CIL coal bids 21.54pct in first 10 days through E-Auction

Coal News - Published on Wed, 10 Oct 2018

Economy Times reported that captive power producers booked 87% of coal on offer by Coal India (CIL) at an average premium of 21.54% in the first 10 days of an auction that offered five-year supply contract through e-auction. The auction offering 17 million tonne ends next week. Till now, the public sector fuel supplier offered 12.66 million tonne from its seven coal producing subsidiaries, of which some 11mt has been booked. Of this, some 9.38 mt was booked at premiums ranging between 1% on the lower side and 141% on the upper range, depending on grade of coal, its source and transport mode. The remaining, around 1.65 million tonne, was booked at notified prices.

Average notified price for bookings was INR 1,216 per tonne which fetched an average premium of INR 300.37 per tonne. CIL is expected to earn a total additional premium of INR 331.54 crore annually on the 11 million tonne booked. It will fetch Coal India INR 1,871 crore annually for five years.

The dry fuel supplier has lined up 17 million tonne for this round of auction meant for captive power producers only. It is the third round of long-term auction being held over the past few months. A Coal India executive, said that “In all, non-power sectors including cement, steel and others will be offered around 30 mt - including 5 mt of coking coal meant for the metallurgical sector.”

Source :

Posted By : Rabi Wangkhem on Wed, 10 Oct 2018
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