CIL arm WCL slashes coal auction floor price for specific mines by 10%; move will help consumers

Nagpur: Western Coalfields Ltd (WCL), a subsidiary of Coal India, has slashed the coal auction floor price of specific mines by 10 percent, a statement said.With an effort to provide coal at a cheaper price to consumers during the current Covid-19 pandemic, the reduced auction price will be applicable for coal from 'mine specific source' for all auctions to be conducted by WCL in April 2020."This will help both Power and Non-Power consumers to get coal at a reduced price," it said.[caption id="attachment_4191453" align="alignleft" width="380"]

Representational image. Reuters[/caption]WCL had identified 11 out of its total 66 mines in November 2019 as 'mine specific source' specially for use of power plants at an additional add-on price of Rs 450 per tonne over the notified price.These 11 mines, including eight greenfield ones -- Dinesh, Makardhokra I, Gokul Bhanegaon, Singhori, Penganga, Yekona, Pauni II & 3 Brownfield- Mungoli, Niljai, and Gondegaon -- were opened during the last five years to provide coal to power consumers in central, western and southern India at their doorstep at a cheaper landed price.Earlier, these power plants were getting coal from mines located in eastern India which was costly due to extra railway freight, it said.With the opening of new projects by WCL, coal became cheaper for these plants to the tune of Rs 1,000 per tonne on an average.WCL requested power entities to share this gain by adding Rs 450 per tonne over the notified price for these 11 specific mines, the statement said.No change in pricing was done for the remaining 55 mines.All linked power plants, including state gencos of Maharashtra, Madhya Pradesh, Gujarat, Karnataka and other private sector power plants are getting coal at specific add on price from these 11 mines."WCL has decided to reduce Special Forward & Spot e-auction floor price of 11 specific mines by 10%," it said.Spot auction floor price will be 20 percent over notified price instead of present 30 percent, and special forward floor price will be 8 percent over notified price instead of present 18 percent."This reduced price will be applicable for Spl 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 existing policy & guidelines of the Company," the release said.