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CIL Reports 65% Surge in E Auction in Apr-Sept 2020

Coal News - Published on Thu, 15 Oct 2020

Image Source: CIL E Auction
Coal India Ltd booked 41.4 million tonnes coal in e-auctions during April-September 2020 up by 65% YoY compared with 25.1 million tonnes booked in the corresponding period last fiscal. CIL decided to give more thrust in auction sales that resulted in higher volumes. Even with the pandemic slowdown, CIL could net 10% average premium over notified value in the first six months of the current fiscal as compared to 48% of the same period year, but the aim was to increase volume supplies.

CIL said that the company anticipated the liquidity crunch that COVID-19 would bring to its customers and brought down the reserve price close to zero to help them lift more coal during the lockdown phase. In two tranches of three months each, CIL kept down its reserve price beginning April till September. After the company's board has given its nod, CIL for its October auctions has injected a rise in reserve price ranging from zero up to a maximum of 10% over the notified price. Based on the market reaction and the premium fetched from sale prices, the company will decide on reserve price for November.

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Posted By : Yogender Pancholi on Thu, 15 Oct 2020
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