Home Construction Materials / Products / Equipment News Concrete & Cement News CIL gets 27% higher price in auction for cement producers

    CIL gets 27% higher price in auction for cement producers

    fuel supplier

    Average premium for the coal booked was Rs 2,214.47 per tonne, which was offered at an average price of Rs 1,747.5 per tonne by the fuel supplier. Coal India is expected to get a total Rs 944.18 crore per tonne annually, around Rs 200 crore more than if it was sold at notified price.

    According to a senior Coal India executive, in FY18, Coal India earned an average realisation of Rs 1,841 per tonne from various e-auctions and Rs 1,257 per tonne from coal sold at notified price. “Notified prices for the non-power sector including cement are 20% higher than the power sector. Thus, premiums fetched at the current auction, when compared to the notified prices of the power sector, average out to a premium of almost 47%,” a senior Coal India executive said.

    Premiums in this round varied widely between near 2% on the lower side and 80% at the higher levels over the 11-day auction. In rupee terms, premiums varied between Rs 50 and Rs 1,000 per tonne, depending on the quality and source of the coal. Winners of each round will be supplied coal at the settled premium for five years. If Coal India decides to increase prices during this five-year term, the premium will remain the same but the notified price will be adjusted as per new rates as and when notified, the executive said.

    “In all, non-power sector, including cement, steel, captive power plants and others, would be offered around 30 million tonnes of coal, including 5 million tonnes of coking coal meant for the metallurgical sector,” he said.

    This is part of the government’s plan to replace all existing fuel supply agreements allotted on a nomination basis to the non-power sector with supply contracts decided through e-auctions. While, the government has decided against premature termination of existing supply contracts allotted through nomination, it won’t renew those that are expiring. These will put up for auction. Premiums decided at the auctions will be valid for five years, after which the exercise will be repeated.

    According to plans, South Eastern Coalfields will be offering 9 million tonnes of coal, followed by Central Coalfields at 6.11 million tonnes and Northern Coalfields at 6.3 million tonnes. Mahanadi Coalfields plans to offer 5.2 million tonnes, while Western Coalfields will be offering 3.5 million tonnes. Bharat Coking Coal and Eastern Coalfields will be offering 0.5 million tonnes and 0.55 million tonnes, respectively.

    Info- https://realty.economictimes


    Please enter your comment!
    Please enter your name here