State-run Coal India has decided to offer 21.5% additional coal this fiscal to power generators through forward e-auctions, while it will reduce offerings in the spot auction market from 2018-19 level by almost 4%.
A senior executive at the coal behemoth said the company will offer 33 million tonnes of coal through forward e-auctions in 2019-20 compared with 27.14 million tonnes in 2018-19. About the same quantity will be offered through the spot auctions market during the year compared with 34.34 million tonnes in 2018-19.
For the non-power sector, Coal India will offer about 64 million tonnes of additional coal for long-term supply contracts through an auction mechanism, the executive said, adding that the rest of the coal, estimated at about 530 million tonnes, will go to power producers with long-term supply contracts.
Successful bidders in the forward auctions will have the option of lifting their allotted quantities in portions over at least two years, offering power houses a secured source of coal for the period. While only power houses are eligible to participate in forward e-auctions, the spot auction market will be open to all.
According to a special forward auction calendar for 2019-20 prepared by Coal India, the highest quantity of 8.5 million tonnes will be offered by Coal India subsidiary South Eastern Coalfields, followed by Mahanadi Coalfields at 8 million tonnes. Northern Coalfields plans to offer about 5 million tonnes while Central Coalfields will be offering 3.85 million tonnes. Western Coalfields plans to offer 2.9 million tonnes.
In September this year, Coal India plans to offer 6.3 million tonnes of coal– the highest in any month during the year.