COAL & MINES

No Takers for 45 per cent Fuel at CIL Auction, 8.5 per cent Premium for Rest

Coal India found no takers for about 45% of fuel offered for annual supply at an auction last week, while the rest fetched an average premium of 8.5% over notified prices. Coal was offered to plants without fuel supply contracts or power purchase agreements (PPAs).

“Premiums registered at the Shakti B(III) auction were far lower than what Coal India fetches at regular spot or forward e-auctions, which has been hovering around 30%,” said a senior Coal India executive.

Against an offer of 11.8 million tonnes, 6.5 million tonnes were booked. Around 18% of the quantity fetched no premium. About 19% of the offer fetched the highest premium of 160 per tonne. About 7% of the quantity fetched 10 premium while some 10% fetched 100 premium.

The offer was considered meagre by private producers who alleged it would fetch hefty premiums of almost 500 crore.

Eligible power companies were Jindal’s Tamnar & Raigarh plant, Derang Plant & Torangulu plant, Raipur Energen’s Raikheda plant, Essar’s Mahan plant, Jaypee’s Nigrie Plant, Dainik’s Badadarha plant, RKM’s Uchpinda plant, KSK Mahanadi’s Akaltara plant and GMR’s Kamalanga Plant.

Source
ET Energy World
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