Companies

CIL registers 53% growth in auction bookings

Our Bureau Kolkata | Updated on June 07, 2021

E-auction booking experiences 49% growth at 6.1 mt

Coal India Ltd (CIL) has registered close to 53 per cent growth in auction bookings during the first two months of the current fiscal. The company also posted better price realisation from e-auction sales backed by an improved demand.

CIL’s total allocated quantity during April-May of the current fiscal moved up to 21.5 million tonnes (mt), under the five auction windows against 14.1 mt for the same period last year.

The company could also garner 16 per cent add on over the notified price during April-May’21 compared to seven per cent in the same period last year. The State-owned miner had brought down the reserve price on coal sold through auction to nearly zero during the first six months of the last fiscal due to Covid induced poor demand and in anticipation of a liquidity situation crunch of its customers.

Reserve price is basically the floor price, over and above the notified price, at which the auctions begin.

“The upward trend in the allocation was primarily driven up by non-power sector, which evinced a healthy appetite for the dry fuel accounting for 50 per cent of the total booked quantity,” the company said in a press statement.

Under ‘exclusive auction for non-power’ this sector booked 10.8 mt during the referred period, posting 77 per cent growth against 6.1 mt that it booked during the comparable period last year.

E-auction booking by power sector consumers also logged a robust 49 per cent growth at 6.1 mt under ‘Special forward auction’ meant exclusively for them, as against 4.1 mt same period last year.

“Though there is revival in supplies to power sector, our concern is that there is still a bit of vacillation in the demand. We hope it stabilizes soon,” a senior company official said in the statement.

Auction allocation under ‘Spot auction’ window where all coal consumers including coal traders could participate, also clocked 35 per cent growth during April-May 2021 at 4.6 mt.

It is to be noted that the company had scripted an all-time high of 124 mt in e-auction sales in FY’21 posting 88 per cent growth over the preceding year. “Hopefully, if the demand regains stability we aim to surpass the last year’s mark with increased add on over the notified price without letdown on supply commitment to power sector and non-power sector,” the official said.

Published on June 07, 2021

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