With an effort to provide coal at a cheaper price to its consumers during the current situation of COVID19 in our country, Western Coalfields Ltd. (WCL), a subsidiary of Coal India Ltd, has taken a step to slash down its coal auction floor price by 10% of its specific mines. The reduced auction price will apply for coal of Mine Specific Source for all auctions to be conducted by WCL only in April’20. This will help both Power & Non-Power consumers to get coal at a reduced price.
WCL had identified 11 out of its total 66 mines in Nov’19 to be Mine Specific Source especially for use of Power Plants at an additional add-on price of Rs. 450 over notified price. These 11 mines including 8 Greenfield- Dinesh, Makardhokra I. Gokul. Bhanegaon, Singhori, Penganga, Yekona, Pauni II & 3 Brownfield- Mungoli, Niljai, Gondegaon were opened during the last 5 years to provide coal to Power Consumers of Central, Western & Southern India at their doorstep at the cheaper landed price.
Earlier these Power Plants were getting coal from mines located in Eastern India which was costly due to extra Railway freight. With the opening of new projects by WCL, coal became cheaper for these Plants to the tune of Rs.1000 per tonne on average. Under a policy, WCL requested Power entities to share this gain by adding Rs.450 per tonne over the notified price for these 11 specific mines.
No change in pricing was done for the remaining 55 mines. All linked Power Plants including State Gencos of Maharashtra, MP, Gujarat, Karnataka & other Pvt. Power Plants are getting coal at specific add on prices from these 11 mines.
Coal from these specific mines are also auctioned under Special Forward e-auction for Power Consumers for those units who are either not linked to WCL or they need more coal in excess of their defined linkage quantity.
Such auction is being done at a floor price 18% over notified price. Similarly, leftover coal from these mines are also offered under Spot e-auction to Non-Power consumers at a floor price 30% over notified price. For mines other than these specific mines, Spl Forward e-auction is done at 25% over notified price & 40% above notified price in Spot e-auction.
As a good gesture of providing relief to its consumers under the present lockdown, WCL has decided to reduce the Spl Forward & Spot e-auction floor price of 11 specific mines by 10%. Spot auction floor price will be 20% over notified price instead of present 30% & Spl Forward floor price will be 8% over notified price instead of present 18%. This reduced price will be applicable for Special Forward & Spot Auction conducted during April’20 only.
Earlier floor price will continue from Auctions conducted from May’20 onwards. WCL is thus providing a window of one month to its consumers for getting coal at a cheaper price. The lifting period of the booked coal at a cheaper price in both auctions to be held in April’20 will be as per the existing policy & guidelines of the Company.