Help Desk -
9958816305, 9810335381
Email
Password

CIL WCL Slashes Coal Auction Price of Specific Mines

Coal News - Published on Mon, 06 Apr 2020

Image Source: CIL WCL Coal Auction
Coal India Ltd subsidiary Western Coalfields Limited has taken a step to slash down its coal auction floor price by 10 per cent of its specific mines. The reduced auction price will apply for coal of Mine Specific Source for all auctions to be conducted by WCL only in April 2020. This will help both power and non-power consumers to get coal at reduced price.
WCL had identified 11 out of its total 66 mines in November 2019 to be Mine Specific Source especially for use of power plants at an additional add-on price of Rs 450 over notified price. These 11 mines include 8 Greenfield- Dinesh, Makardhokra I. Gokul. Bhanegaon, Singhori, Penganga, Yekona, Pauni II and 3 Brownfield- Mungoli, Niljai, Gondegaon were opened in the last 5 years to provide coal to power consumers of Central, Western and Southern India at their doorstep at cheaper landed price. Earlier these power plants were getting coal from mines located in Eastern India which was costly due to extra railway freight. With opening of new projects by WCL, coal became cheaper for these plants to the tune of INR1,000 per tonne on an average. Under a policy WCL requested power entities to share this gain by adding Rs 450 per tonne over notified price for these 11 specific mines. No change in pricing was done for remaining 55 mines.

All linked power plants including State Gencos of Maharashtra, MP, Gujarat, Karnataka and other private power plants are getting coal at specific add on price from these 11 mines. Coal from these specific mines are also auctioned under Special Forward e-auction for power consumers for those units who are either not linked to Western Coalfields Limited or they need more coal in excess of their defined linkage quantity. Such auction is being done at a floor price 18 per cent over notified price. Similarly left over coal from these mines are also offered under Spot e-auction to non-power consumers at a floor price 30 per cent over notified price. For mines other than these specific mines, Special Forward e-auction is done at 25 per cent over notified price and 40 per cent above notified price in spot e-auction.

Source :

Posted By : Yogender Pancholi on Mon, 06 Apr 2020
Related News from Coal segment