Coal India has almost achieved its e-auction target for the current fiscal, and is looking at offering additional supplies.
At the start of the year, it targeted e-auction sales of 120 million tonnes (MT) of which it has already achieved 113 MT by December, officials said.
On offer is an additional 5 MT which company officials think would be lapped up as its prices would be far lower than the international prices and it would offer a long-term assured contract which could be extended to 25 years. This would make it 118 MT against a target of 120 MT. Coal India is now looking at offering additional volumes depending on the demand and stock positions at various coalfields.
The miner expects demand for long-term auction to be high since international coal prices are on the rise and are expected to rise further. Coal India would offer coal at a discount on international prices and supplies would be assured for the entire period of the contract, which could be as long as 25 years.
Coal India’s average realisation from e-auction stood at Rs 1,463 per tonne in the second quarter against Rs 1,994 per tonne in the previous corresponding period, a 25 per cent fall. Lower prices would help bidders grab coal supply contracts at reasonable prices.