Coal India's e-auction volume projected to double in second half of FY24

Coal India is likely to e-auction approximately 60 million tonnes of coal in the second half of the current fiscal year, according to estimates indicated by the management.

This represents a significant increase from the 32 million tonnes sold in the first two quarters of the year, officials said.

Coal India informed analysts that it aims to sell 15 per cent of its production in the second half of the current fiscal (September 2023-March 2024) through e-auctions, which currently command a premium of around 90 per cent over the Fuel Supply Agreement (FSA) price.

"We are expecting 15 per cent of production to be e-auctioned in the second half," Coal India chairman PM Prasad said.

In the first half of the year, Coal India produced 360 million tonne and the miner remained confident to produce 780 million tonne this fiscal.

Coal India also informed of its plans to raise e-auction share of production from 10 to 15 per cent in the current fiscal year and further increase it to 20 per cent by FY25.

Regarding capex plans, Prasad said, "For Coal India as a whole, the capex is Rs 16,500 crore. Land acquisition and mining equipment make up the majority of the annual capex."

On developing solar power, Prasad said, "Coal India will be pursuing this in a phased manner. Our net-zero target is to achieve 3,000mw. By the end of this year, we will be installing 250mw."

He said Coal India plans to increase its underground share, which currently stands at 25 million tonnes, to 100 million tonnes by 2030.