Coal India’s average realisation from e-auctions has jumped 31% during the March quarter and 20% for FY18 on higher demand and international prices.
However, its realisation from sales through fuel supply agreements rose only 2% in the quarter from a year ago, but was up 19% from the preceding three months after the company raised prices.
For the full fiscal year, price realised from fuel sales agreements fell about 3% as it had to deliver more coal to power plants to meet additional demand. This fetches a lower price than e-auctions.
Niladri Bhattacharjee, metals and mining expert at KPMG India, said coal output was lower than the initial target. “Therefore the entire unmet demand fell upon e-auction coal, which pulled up premium considerably,” he said. A Coal India executive said the trend was likely to continue this fiscal also. Read More