India: CIL subsidiaries notify over 1 mnt in upcoming e-auctions; ECL focuses on lower grades

• • ECL drives volumes with lower-grade coal

• • SECL focuses on premium-grade coal offerings

Eastern Coalfields Ltd. (ECL) and South Eastern Coalfields Ltd. (SECL) have collectively notified 1.05 million tonnes (mnt) of non-coking coal for their e-auctions scheduled on 31 Jul’26, offering buyers a broad mix of premium and lower-grade thermal coal. ECL accounts for the bulk of the offering with 936,000 tonnes (t), primarily comprising lower-grade G11, G12 and G13 coal targeted at cost-conscious consumers.

In contrast, SECL has offered 116,000 t across G6, G7 and G8 grades, focusing on higher-quality coal for industrial users. Road dispatch dominates both auctions, while select rail-based parcels provide additional flexibility for bulk procurement.

ECL’s G13 dominates as lower-grade coal drives auction volumes:

ECL’s auction is overwhelmingly led by G13, with 500,000 t offered exclusively from Rajmahal OC through road dispatch. The ROM (-50 mm) coal is priced at a notified price of INR 1,716/t, making it the lowest-priced grade in the catalogue. Another 200,000 t of G11 is available from Rajmahal OC and Hura C OC at INR 2,154/t respectively, while 100,000 t of G12 from Hura C OC is offered at INR 1,801/t. Together, these three grades account for over 85% of ECL’s total offering, highlighting the company’s focus on supplying economical coal to cement, sponge iron and captive power sectors.

Premium G3 and G4 remain limited but strategically positioned:

Despite the dominance of lower grades, ECL continues to provide limited quantities of premium coal. G3 totals just 11,000 t, comprising road dispatch from Khas Kajora UG 3000 t and rail supply through UKA-II-MSPE 4000 t and CHA-II(P)/PSEC 4000 t, at a notified price of INR 3,719/t, the highest among all grades on offer.

Although lower grades dominate volumes, G4 remains the most geographically diversified grade in the auction. The company has offered G4 coal across multiple underground and open-cast mines through both road and rail dispatch. Road offerings include Mandarboni UG (1,500 t), Chora Block Incline UG (1,500 t), Lower Kenda UG (1,000 t), Bahula UG (3,000 t), Khottadih OC (5,000 t), Shyamsunderpur UG (15,000 t), Kumardihi B UG (7,000 t), Jhanjra UG (2,000 t), Belbaid UG (3,000 t), Sonepur Bazari OC (30,000 t) and JK Nagar UG (1,000 t).

Rail availability is spread across DBCP Siding, UKA IV (Bankola Line II), POCP II, PAWI POCP-I, CHA-II(P)/PSEC, PSBP and DN-IB, with 4,000 t offered from each loading point. All G4 parcels are notified at INR 3,557/t, making them the principal premium-grade offerings in the auction.

G5 and washery grades widen sourcing options:

The G5 portfolio totals 11,000 t, comprising 1,500 t from Siduli UG, 1,500 t from Amkola OC, 1,000 t from Barmuri OC, along with 4,000 t each through RNG-I and MMU IIIA/PMCS rail loading points. All G5 lots are notified at INR 3,275/t.

Washery grades are also available in modest quantities. W03 includes 500 t from Hariajam UG at a notified price of INR 3,218/t. W04 totals 4,500 t, sourced from Khoodia UG, Shyampur B UG, Badjna UG and Kumardhubi UG, with a notified price of INR 2,890/t. The W05 segment contributes 14,000 t from the Salanpur E cluster, comprising 10,000 t through road dispatch from Gourangdih OC and 4,000 t via Dalmiya Siding by rail, both priced at INR 1,997/t.

SECL shifts focus to premium and mid-grade coal:

Unlike ECL’s volume-driven strategy, SECL has notified a relatively compact 116,000 t auction comprising only G6, G7 and G8 grades. The offering is predominantly road-based, reflecting the company’s focus on supplying higher-quality coal rather than large volumes.

G6 and G7 headline SECL’s premium portfolio:

The G6 grade contributes 49,000 t, led by Gayatri UG (30,000 t) and Kurja UG (19,000 t), with a notified price of INR 2,761/t.

Meanwhile, G7 accounts for 41,000 t, comprising 30,000 t through road dispatch from Ketki UG, Rehar UG offering 3000 t, along withRajmahal RO offering 8,000 t via Rajnagar OC cluster and Kurja cluster cumulatively. The grade is priced at INR 2,540/t, offering buyers a balance between quality and procurement cost.

G8 provides competitively priced supply:

SECL has also offered 30,000 t of G8, sourced from Amera OC (20,000 t) and Rajnagar OC (10,000 t) through road dispatch. The grade carries a notified price of INR 1,931/t, making it the most economical option in SECL’s auction portfolio.

Market outlook:

The latest auction notices highlight two distinct marketing strategies adopted by Coal India subsidiaries. ECL has prioritised volume by offering large quantities of lower-grade coal, targeting cost-sensitive industries such as cement, sponge iron and captive power plants. SECL, in contrast, has focused on a smaller but higher-quality portfolio dominated by G6 and G7 grades.

Demand is expected to remain strong for premium grades across both auctions due to their limited availability, while the success of ECL’s sizeable lower-grade offering will largely depend on procurement appetite from bulk industrial consumers. Together, the two auctions provide buyers with a wide range of quality, pricing and logistics options to suit different operational requirements.