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What is the story about?
Shares of Coal India Ltd
. gained as much as 7% on Friday, January 2, after a major development with regards to the e-auction process.
Starting Thursday, India's largest miner has permitted coal consumers located in neighbouring countries such as Bangladesh, Bhutan and Nepal, who intend to import coal from India, to directly participate in the Single Window Mode Agnostic (SWMA)auctions that the company carries out.
Under this revised framework, foreign buyers can participate along with domestic buyers in the auction. Earlier, access to foreign consumers was only through domestic coal traders. Some key provisions for foreign buyers include one-time registration, participation through digital bidding, advance electronic payments and export through notified logistics channels.
“Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration” said a senior company official.
While buyers from Nepal can make their payments in rupees as well as the US Dollar, the buyers from other two countries will have to make their payments in US Dollars only.
Coal India was in the news on Thursday after it disclosed its business update for the month of December, where production went up by 4% from last year, but offtake declined by 5%. On a year-to-date basis for the current financial year, Coal India's total output stood at 529 MT, 2.2% lower than last year, and 60% of the full year target of 875 MT.
Shares of Coal India are trading 6.8% higher after the announcement at 427.6, the highest level since December 2024. The stock is now the top gainer on the Nifty 50 index. Shares though, are down significantly from their 52-week high.
Starting Thursday, India's largest miner has permitted coal consumers located in neighbouring countries such as Bangladesh, Bhutan and Nepal, who intend to import coal from India, to directly participate in the Single Window Mode Agnostic (SWMA)auctions that the company carries out.
Under this revised framework, foreign buyers can participate along with domestic buyers in the auction. Earlier, access to foreign consumers was only through domestic coal traders. Some key provisions for foreign buyers include one-time registration, participation through digital bidding, advance electronic payments and export through notified logistics channels.
“Opening SWMA e-auctions to foreign buyers reflects CIL’s calibrated approach to market expansion while fully safeguarding domestic coal requirements. This step enhances transparency, competition and global market integration” said a senior company official.
While buyers from Nepal can make their payments in rupees as well as the US Dollar, the buyers from other two countries will have to make their payments in US Dollars only.
Coal India was in the news on Thursday after it disclosed its business update for the month of December, where production went up by 4% from last year, but offtake declined by 5%. On a year-to-date basis for the current financial year, Coal India's total output stood at 529 MT, 2.2% lower than last year, and 60% of the full year target of 875 MT.
Shares of Coal India are trading 6.8% higher after the announcement at 427.6, the highest level since December 2024. The stock is now the top gainer on the Nifty 50 index. Shares though, are down significantly from their 52-week high.
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