State-run coal producer Coal India (CIL) has so far supplied approximately 26 mn t more coal during Apr-Dec 2012-13. The company has set a target of raising its supply by 37 million tonne (mn t) during 2012-13.

However, the firm has reportedly sold approximately 30 mn t coal through e-auction during April-December 2012, which is less than the auction sales in the comparable period in 2011.

The decline in sales through e-auction may reduce the profit opportunity of the monopoly coal producer by approximately Rs 500-600 crore in 2012-13.

But some analysts feel that this may not impact the company’s profit growth as lower revenues from e-auction will be compensated by a robust growth in overall sales.

With the sharp decline in open market price of coal, industry watchers feel that lower spot sales may not affect consumers – primarily the iron and steel and, cement sectors.

Realisations of Bharat Coking Coal (BCCL) – the only producer of coking coal in the country and a top draw in e-auction - declined from double the notified price to 75 per cent higher than the price paid by power sector.

Also with increasing availability, consumers have become quality conscious. As in September, the quantity sold through e-auction was 3 mn t less than total offerings.