#Coal India’s e-auction premiums are getting costlier due to #CNG and #LPG shortage

Coal India’s e-auction premiums have risen to around 35% over notified prices in February 2026

India’s overall coal demand has been rising steadily, with annual consumption crossing 1.25 billion tonnes, driven primarily by the power sector, cement, sponge iron, and captive industrial users. Early signals from coal markets indicate tightening demand–supply dynamics. Coal India’s e-auction premiums have risen to around 35% over notified prices in February 2026, reflecting increased urgency among buyers to secure supply. This marks a shift from softer demand trends earlier in the fiscal year. The demand uptick is being driven by multiple factors, including substitution from gas amid LNG disruptions, seasonal ramp-up in power demand, and reduced imports leading to greater reliance on domestic coal. However, coal’s substitution potential remains largely limited to the power sector in the short-to-medium term. Structural and technological constraints continue to restrict its widespread adoption in industrial applications such as fertilisers and chemicals.

Commenting on the evolving scenario, Vinaya Varma, MD & CEO, mjunction services limited stated, “What we are witnessing is an early but clear behavioural shift in fuel consumption patterns. As LNG availability tightens and CNG/LPG supplies face disruption in several industrial clusters, buyers are increasingly turning to coal to secure operational continuity. The rise in e-auction premiums and improved offtake reflects this urgency. Coal will continue to play a critical role in ensuring India’s energy security, especially in times of global uncertainty. While we are witnessing localized tightening in demand and firming of prices, the overall market remains balanced due to strong domestic availability and adequate stock levels.”

Importantly, the situation remains measured rather than overheated. Only about 47% of auction volumes have been sold so far this year, and current premiums remain below historical peaks, indicating controlled but firming demand. Current coal stock levels at power plants remain comfortable at 18–20 days of consumption, preventing panic buying despite tightening spot demand signals in auction markets. Overall, while India is not facing an immediate energy crisis, evolving global disruptions are beginning to test the system.

#Coal India to place order for 10.000 wagons shortly:AK Vijay, CFO, #Texmaco Rail & Engineering Ltd.

#Coal India to place order for 10.000 wagons shortly:AK Vijay, CFO, Texmaco Rail & Engineering Ltd. pic.twitter.com/4IxS2rNKiL
— Press Release Watch (@PrReleaseWatch) December 1, 2014

According to AK Vijay, CFO, Texmaco Rail & Engineering Ltd Coal India Ltd is likely to place order for 10.000 wagons shortly. Texmaco is likely to grab a large share of the order as county's largest wagon making company.In  order to clear the coal stock from the pithead the new wagon stock is needed.The government had allocated 2,400 wagons to the company in April 2014.The company has successfully completed a QIP of Rs.300 crore which was over-subscribed 2.83 times. Large MFs, institutional funds  have participated in the Texmaco QIP.The Company's current order book is at 1,200 cr and capacity utilisation at 62%, stated by AK Vijay, CFO, Texmaco in an TV interview.

CAPEX Investment Plans of Central Public Sector Enterprises (CPSEs) Performance for Q1 FY 13-14

The Prime Minister’s Office has been monitoring the CAPEX and investment plans of selected Central Public Sector Enterprises (CPSEs) since FY 12-13. The purpose of this exercise was to enhance investment in the economy and use CPSEs to drive economic growth.

The CAPEX target set for FY – 2013-14 is Rs. 141,912 crores. This covers 23 CPSEs, including major investors such as ONGC, Oil India, GAIL, Indian Oil, MRPL, SAIL, NMDC, Powergrid, NHPC, NTPC, Coal India, Neyveli Lignite Corp., CONCOR, NALCO, BHEL, BEL, Rashtriya Ispat Nigam, Satluj Jal Vikas Nigam and Nuclear Power Corporation.

At the end of the first quarter, (Q1, FY13-14), the overall capital investment by all these CPSEs is Rs 23,635 crores as against the Q1 target of Rs. 25,131 crores. This is an achievement of 94%. It was also noted that six CPSEs, viz, NMDC, PGCIL, NLC, BEL, RINL and HAL had surpassed their first quarter targets.

In a review meeting of the lagging CPSEs, i.e., NTPC, SJVNL, Coal India, CONCOR and NPCIL, the individual CPSEs assured that they would exceed targets by Q2 or latest by Q3.

Coal secretary says auction of explored blocks by January

Coal Secretary S K Srivastava today said the auction of explored coal blocks is likely to be undertaken in by January 2014.

A ‘letter of comfort’ from the Ministry of Environment & Forests (MoEF) would be given to the successful bidder. There would also be an exit route after a period of two years if the requisite clearances fail to materialize without any penalty.

There have been discussions on lump sum payment or revenue based models and a framework for the same would be intimated shortly, he said a CII conference today.

S Narsing Rao, Coal India chairman, said the PSU was all set to meet the deadline for signing fuel supply agreements (FSAs) and it had already entered into fuel supply pacts with about 140 power plant.

Coal India has to sign 173 FSAs for a capacity of 78,000 MW. There were issues with only 4-5 FSAs (of which three were with WCL), regarding the cost plus clause and land acquisition, said Rao.

To supplement the efforts of Coal India to augment output, Srivastava also informed that a pilot project was being undertaken by the Department of Economic Affairs, Ministry of Finance, to draft the modalities of bidding documents for selection of mine-developers and operator (MDO) for certain Coal India mines. CIL has already allocated one block for the pilot.

Relatively new in India, MDO is a concept where in a coal block owner contracts entire operations to a third party, which takes the responsibility of land acquisition, resettlement and rehabilitation, mining, developing and operating the particular mine by investing in it and then supplying the coal at a tender determined price to the power plants of the mine owning state electricity boards.

Srivastava also outlined the details of the Jharia Action Plan, formulated to control the raging underground fires. Two independent assessments – one by CMPDIL and the other by NGRI – on the extent of fire and other related issues were expected in three months. The BCCL will also soon seek Expression of Interest (EOI) on other technology available globally to tackle the fire.

Sustainability of mining operations was a key point of discussion at the CII Roundtable. Rao highlighted the need for post-project monitoring and raising of standards overall. “We need to substantially improve EMP in the interest of the country and in the interest of the sustainability of the project,” he said.