CIL might suffer setback in Q4 e-auctions due to muted power sector demand

Amid the projection of tepid demand from the power industry, the cement and steel sectors might come to the miner's rescue

After a 76 per cent increase over the average notified price in the e-auctions during October-December last year, Coal India might see auction prices falling as demand from the power sector is expected to remain muted in the fourth quarter (Q4) of the current financial year.  

Analysts are of the view that power demand usually declines in the winters and with Coal India stepping up its sales, the country's power generators would be returning to near-normalcy latest by mid-February.

"In turn, this is going to affect demand from the power sector in the e-auctions", an analyst from Motilal Oswal said.

In November 2017, despatches to the