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Informist, Thursday, Oct. 1, 2026

 

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--Coal India offered 13.02 mln tn in Sept via e-auction 
--Coal India allocated 9.36 mln tn in Sept via e-auction 
--Coal India offered 142.19 mln tn in Apr-Sept via e-auction 
--Coal India allocated 57.1 mln tn in Apr-Sept via e-auction 

 

KOLKATA – Amid rising demand for coal as the country's thermal power plants stepped up output, Coal India Ltd. registered a steep increase in its premiums in the electronic auctions in September and registered an improvement in coal bookings from consumers, although it offered lower quantities on-month. 

 

While the world's largest coal miner offered 13 million tonnes of coal on the auction platform, which is lower than the 21 million tonnes it offered in August, the company saw an uptick in coal which finally got sold last month. The company allotted 9.4 million tonnes of coal to the bidders, which is 72% of the quantity the Maharatna company offered in the auctions in September. Comparatively, in August, Coal India allotted 8.3 million tonnes of coal, which is only 39% of the quality the company put under the hammer. 

 

As coal demand increased, namely from the power sector, competitive intensity in the auctions increased as well. This led bidders to place higher bids over the notified coal price in the auction. As a result, Coal India's premium in the September auctions increased 94% over the notified price as against a 59% increase in August. 

 

In the auctions, Coal India usually lists the coal to be sold at 20% higher than the notified price. Bidders start placing their bids at a minimum 20% higher than the notified coal price and then the bids go higher based on competitive intensity. This differential in the final price of the sale compared to the notified price refers to as the premium the company earns. This premium directly aids Coal India's profits as coal production cost is the same for coal sold at notified prices, which is lower than the auction prices. 

 

Coal shortages, namely in north Indian power plants, led to the entire 223,000 tonnes of coal offered by Coal India subsidiary Northern Coalfields Ltd. getting sold and allotted in September, while the arm saw its premium increase by a whopping 231%. 

 

Mahanadi Coalfields Ltd. also saw 94% of the 3.8 million tonnes of coal being sold at a premium of 52%. Eastern Coalfields Ltd., with its offer of higher-grade coal, saw 42% of the 2.7 million tonnes coal being offered finally sold at a premium of 118%. Western Coalfields Ltd. registered 60% bookings at 105% increase over notified prices out of the 1.5 million tonnes which it put under the hammer. 

 

Central Coalfields Ltd. was able to finally sell 80% of the 3.2 million tonnes of coal which went under the hammer at a premium of 84%, and South Eastern Coalfields Ltd., which is currently focussing on increasing coal supplies across the country's power plants, saw 83% of the 640,000 tonnes of coal being sold at a premium of 211%. 

 

During Apr-Sept, Coal India offered 142.2 million tonnes of coal in the auctions, of which it was able to finally sell, or allot 5.7 million tonnes or 40% of the offered quantity, to buyers at an average premium of 54%. 

 

For the June quarter, Coal India had reported consolidated net profit of INR 88.52 billion on revenues of INR 462.55 billion. At 1333 IST, its shares traded nearly 1% down from Wednesday at INR 420.95 apiece on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Avishek Rakshit

Edited by Shubhayan Bhattacharya

 

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