The premium has dropped sharply from that level despite a fall in the amount of coal available for spot-auctions from 57.4 million tonne in FY16 to 53.83 million tonne in FY17, a report sent by coal ministry to the Cabinet has disclosed. "Drop in e-auction realisation due to sharp reduction in imported coal price leads to reduction in average sales realisation," Coal India has recently said in an investors' presentation based on its FY16 figures. Falling e-auction realisation, coupled with the downgrading of some of its mines would put added pressure on Coal India's profitability this year. The coal behemoth had sold around 543.2 million tonne of the fossil fuel in FY17. Even with production target for FY18 being brought down from 660 million tonne to 600 million tonne, Coal India needs to grow its output at 8% in the current year.

Source: dna May 03, 2017 01:41 UTC