New Delhi: State-ownedCoalIndia Ltd (CIL) on Thursday said it has registered a 77 per cent growth in e-auction sales, under five windows, at 68.3 million tonnes (MT) during the April-November period of the ongoing fiscal.
The upsurge in the booked or allocated quantity of coal was close to 30 MT, in absolute terms, compared to 38.6 MT booked during the same period a year ago, CIL said in a statement.
Indicating increased appetite from non-power consumers, exclusive auction for this sector booked 17.4 MT, which is 25.5 per cent of the total allocated quantity during the referred period.
Compared to 4.8 MT booked by non-power consumers during April-November last fiscal, the growth is more than a three-and-a-half folds or 262 per cent.
E-auction sales for November not only witnessed improved volume bookings at 9.4 MT, clocking 23.7 per cent growth last November, but CIL could also net 30 per cent premium over the notified prices.
This is a big leap from 13 per cent premium the auctions fetched in October when CIL for the first time in the present fiscal introduced add on over the notified price, after a six month hiatus, to gauge the market response.
Considering the market response to e-auctions, there is a strong possibility that the bookings could go over 100 MT in the current fiscal.
‘Special spot auction for coal importers’ also gained positive response with 3.3 MT booked in November with a premium of 21 per cent.
The quantity is twice that of 1.6 MT booked in October, the first occasion CIL introduced this window, when the premium fetched over notified price was 14 per cent.
“For now the focus remains on volume expansion in e-auction sales rather than add-ons over the reserve price. Going forward add-ons will be pliable based on subsidiary wise and grade wise demand,” a senior executive of the company said.
Given the power sector’s 80 per cent share in CIL’s total off-take programme, it will not be feasible for non-power sector to offset demand shortfall from the power sector fully.
However, the demand from the non-power sector is on the up and there is scope for further increase.
Till the demand from the power sector strengthens and stabilises, CIL is eyeing sponge iron, CPPs, Cement and Aluminum sectors etc, with a two-fold aim.
To ramp up volume despatches and substitute imported coal with domestic coal, CIL has communicated with over 300 coal importers seeking their requirement from domestic sources. The international coal prices taking a northerly route in the last fortnight could offer CIL an opening.