Higher output could boost Coal India’s spot sales, says Pramod Agrawal
Coal India will increase spot auctions of the fuel in the coming months, the chairman of the world’s biggest coal miner said on Monday, as the company’s rising output has left them with enough fuel to meet increasing demand from non-utility power plants.
An increase in spot auction sales, which offer higher margins than its mainstay long-term contracts, will help Coal India to build off its record profit from this year and maintain a share price, which has climbed 25% since April and outpaced a 5.9% rise in the broader Nifty index.
Non-utility power plants refers to those that don’t have long-term contracts, or that operate only for in-house consumption by industries such as aluminium smelters.
