The record coal production last fiscal allowed public-sector behemoth Coal India to augment sales via the lucrative electronic auction route to firms with captive power plants and power generators. The rise in e-auction sales boosted the company’s annual sales by Rs 2,500 crore.
In FY16, CIL sold 58 million tonnes (mt) of coal under spot e-auction. While this was 11% higher compared to FY15, the company discovered 33% higher prices compared to the notified rate. The lower grade of coal, for example, is priced at Rs 800-1,000/tonne by the state-run miner for supplies to power developers with fuel supply agreement (FSA).