CIL's Coal allocation via Auctions registers a plunge of 37% y-o-y in Jan'20

India's largest coal miner, Coal India Ltd (CIL) usually allocates coal to its consumers (power and non-power sector) either via FSAs (Fuel Supply Agreements) or via auctions. According to the latest numbers published by Coal India, the quantity of coal allocated via auctions in the month of Jan'20 has registered a decline of 37% y-o-y basis. The miner allocated about 6.31 MnT of coal via auctions in Jan'20 against 10.06 MnT in Jan'19. Whereas, if we compare the same against the previous month of Dec'19, the quantity allocated via auctions stood at 7.58 MnT.

In the month of Jan'20, the highest quantity of coal allocated via spot e-auction was about 3.62 MnT and the increase over the notified price was 51%. However, in the month of Dec'19 the coal quantity allocated via spot e-auction was 5.07 MnT and the increase over notified price was 67%.

The quantity of coal allocated via special forward e-auction for power was 2.39 MnT and the increase over notified price was 19%, the quantity allocated via special spot e-auction was 0.30 MnT and the increase over notified price was 32%.

Coal distribution through e-auction was introduced by CIL in order to provide access to coal to those buyers who are not able to source the fuel through available institutional mechanism. The purpose of e-auction is to provide equal opportunity to all intending buyers for purchasing coal through single window service. Coal India accounts for over 80 per cent of domestic coal output.

Scenario during Apr'19 -Jan'20

During first ten months of ongoing FY20 (Apr'19 - Jan'20) the total quantity of coal allocated by CIL via auctions stood at 52.5 MnT against 64.2 MnT in the corresponding period of previous fiscal, thus registering a plunge of 18% y-o-y basis.

The total quantity of coal allocated via spot e-auction by CIL during Apr'19 - Jan'20 stood at 24.9 MnT (down by 5% y-o-y) and the increase over the notified price stood at 64%. The quantity of coal allocated via special forward e-auction for power during the above period stood at 19.8 MnT (down by 23% y-o-y) and the increase over the notified price stood at 31%, quantity allocated via exclusive e-auction for non-power stood at 6.84 MnT (down by 28% y-o-y) with increase over notified price of 34%. The quantity of coal allocated via special spot e-auction stood at 0.96 MnT against 2 MnT in the corresponding period of previous fiscal and the rise in the notified price was 31%.

Source: CIL
Qty in MnT