Coal India reduces EMD amount for e-auctions to facilitate increased participation

Coal India Limited (CIL) has decided to reduce the Earnest Money Deposit (EMD) for its single window mode agnostic e-auction to encourage broader participation. This decision was made during the 343rd Committee of Functional Directors (CFDs) meeting on 25 June 2024 at CIL headquarters in Kolkata.

Historically, the EMD was set at INR 200/t and had increased to INR 500/t. However, the e-auction premiums declined significantly post-2022, reflecting reduced competitive bidding. It is to be noted that e-auction premiums over base prices have fallen from 252% in FY23 to just 47% in FY24 dropping further to 29% so far in FY25.

After thorough discussions, the CFDs approved reducing the EMD from INR 500/t to INR 150/t. This change aims to lower entry barriers for bidders, increase participation, and enhance bidding competitiveness.

This reduction is a strategic measure by CIL to revitalise its e-auction schemes. By making bidding more affordable, CIL hopes to create a more competitive environment, benefiting both the company and its bidders through better price realisations and dynamic market behaviour.