Power producers book 87% CIL coal in first 10 days of bids

13-Oct-2018

Captive power producers booked 87% of coal on offer by Coal India (CIL) at an average premium of 21.54% in the first 10 days of an auction that offered five-year supply contract through e-auction.

The auction offering 17 million tonne (mt) ends next week. Till now, the public sector fuel supplier offered 12.66 mt from its seven coal producing subsidiaries, of which some 11mt has been booked. Of this, some 9.38 mt was booked at premiums ranging between 1% on the lower side and 141% on the upper range, depending on grade of coal, its source and transport mode. The remaining, around 1.65 mt, was booked at notified prices.

Average notified price for bookings was Rs 1,216 per tonne which fetched an average premium of Rs 300.37 per tonne. CIL is expected to earn a total additional premium of Rs 331.54 crore annually on the 11 mt booked. It will fetch Coal India Rs 1,871 crore annually for five years.

The dry fuel supplier has lined up 17 mt for this round of auction meant for captive power producers only. It is the third round of long-term auction being held over the past few months. “In all, non-power sectors including cement, steel and others will be offered around 30 mt — including 5 mt of coking coal meant for the metallurgical sector,” said a Coal India executive.

Source: THE ECONOMIC TIMES