(ET)
Coal India plans to auction 60 per cent of its inventory by May to liquidate stocks that touched a record 75 million tonnes in March. The company has decided to reduce floor price for bidding, from 20 per cent-30 per cent above notified price, to the notified prices and bulk of the offer would be for auctions allowing consumers to lift booked quantities over several months.
The lockdown has hit coal demand as manufacturing and power generation have slowed down. Coal India executives said demand outlook is not promising for at least the first half of this fiscal.Coal India is also expecting increased competition from imports as global coal prices have started to soften. Coal auctions are expected to help prevent the market from being swayed away towards import segment due to a possible drop in global prices.
