1. THE SINGARENI COLLIERIES COMPANY LIMITED WELCOME

2. AUCTION OF LINKAGES OF NON-REGULATED SECTOR
, SINGARENI BHAVAN, HYDERABAD

3. NEW COAL ALLOTMENT POLICY Ministry of coal Govt
NEW COAL ALLOTMENT POLICY Ministry of coal Govt. of India has announced a new coal allotment policy called “AUCTION OF LINKAGES OF NON-REGULATED SECTOR” vide no. NO.23011/51/2015-CPD(Pt1), dt:

4. PREVIOUS COAL ALLOTMENT SYSTEM
MINISTRY OF COAL
(SLC –LT)
POWER
CEMENTS
CAPTIVE POWER
SPONGE IRON
FERTILIZER
DEFENCE
RAILWAYS
STATE GOVT RECOMMENDATIONS
COMMISIONER OF INDUSTRIES OF TELANGANA & OTHER STATES .
(AGRO,TOBACCO,PAPER,CERAMIC
DAIRY,PHARMACUTICALS,OIL, STEEL ROLLING etc.)
NREDC TS/AP/ FOR BIOMASS BASED POWER PLANTS
ACQ below tonnes/year will be considered for allotment against the recommendation of Industries department/NREDC.

5. POLICY GUIDELINES OF “AUCTION OF LINKAGES OF NON-REGULATED SECTOR” (New Policy)

6. 1. Policy guide lines of AOL
The proposal of competitive bidding for auction of coal linkages/LoAs to non-regulated sector has been approved by Cabinet Committee on Economic Affairs (CCEA)/GOI & certain policy guidelines for auction of linkages of Non-Regulated Sector have been decided.

7. Policy guidelines contd….
Proportion of coal allocation between power and non-power sectors may be continued at the same level as average production of the last five years i.e. 75% Power and 25% Non-power. The Ministry of Coal may review the proportion as and when required.
All allocations of linkages/LoAs for non-regulated sector viz. Cement, Steel/Sponge Iron, Aluminum and others excluding Fertilizer (Urea sector), including their CPPs, shall henceforth be auction based.
The tenure of new Fuel Supply Agreements (FSAs) is fixed as 5 years and it is extendable by another 5 years on mutual acceptance.

8. Policy guidelines contd…
The existing FSAs with CPSEs may continue to be renewed on expiry. However, in case CPSEs require linkages over and above the existing linkages, they may participate in auction of linkage.

9. Policy guidelines contd….
For auction of linkages, separate quantities shall be earmarked for sub-sectors of Non-Regulated sector.
The sub-sectors shall compete within themselves. The sub-sectors could be Cement, Sponge Iron/Steel, CPP and others.

10. 2. Methodology of auction
SCCL will allocate/earmark coal from mines/CHPs.
The methodology for auction of linkages shall be Non-Discriminatory Ascending Clock Auction, where the Auctioneer increments the price (premium) on the electronic platform till demand-supply equilibrium is established.
In this methodology, prices shall be directed by the supplier coal company through algorithmic iteration.

11. 2. Methodology of auction contd…
The initial floor price shall be set at the relevant SCCL basic notified non-power price and bidders shall bid for premium above this price for the relevant grade and for a particular ‘link quantity’.
If bids are received for quantity greater than ‘link quantity’ offered, then the premium is increased in steps.
Auction stops when bids are received for exact quantity i.e. ‘link quantity’ offered. Each successful bidder pays the same price.

12. The auction method is illustrated below:
Link quantity offered
1 MT
Bidding Round 1
Premium over SCCL Notified price
Rs.0/Tonne
Bides received for
3 MT
Bidding Round 2
Premium over SCCL Notified price
Rs.25/Tonne
Bids received for
2.5 MT
Bidding Round 3
Premium over SCCL Notifiedprice
Rs.50/Tonne
Bids Received for
1.5 MT
Bidding Round 4
Rs.100/Tonne
RESULT: 1 MT quantity Rs.100/Tonne over SCCL Notified Price

13. Other Important points
The Notified price to be paid shall be suitably indexed by SCCL for subsequent years.
Maximum bid quantity by a particular bidder shall not exceed the normative requirement of the End Use Plant.
For auction of linkages, SCCL shall chalk out annual or 6-monthly auction calendar.
There shall be provision for Third Party Sampling of coal supplied.

14. Advantages of the Policy
Transparent coal allotment system.
It is a customer choice of selecting despatch point & Grade.
100% of normative requirement can be procured as against 75% earlier.
Provision for Third party sampling for all customers
Sector wise demarcation of auctioned quantity which result in continuous delivery of coal
New units who are not having coal linkage or allotment at present are also eligible. Valid CFO is required.
FSA will be signed for 5 years instead of present 3 years period. This will be extendable for another 5 years with mutual acceptance.

15. AOL STATUS IN SCCL
SCCL conducted “Auction of linkages of non-regulated sector” in 4 phases (Tranche-1, Tranche-2 , Supp.Tranche and Tranche-3) for all 4 sectors (cement, CPP, Sponge and Others) from October 2016 to March 2018.
A total quantity of 9.55 million tonnes was sold in the above auctions and 105 E-FSAs were signed with the successful bidders of cement, CPP, Sponge and others sectors.
The coal supplies were commenced from

16. Performance of AUCTION OF LINKAGE –Tranche I , II , Supp
Performance of AUCTION OF LINKAGE –Tranche I , II , Supp.Tranches and Tranche-III
TRANCHES
CEMENT
CPP
SPONGE IRON
OTHERS
TOTAL
Offered Qty. in Lakh Tonnes
Sold Qty. in Lakh Tonnes
% SOLD
Offered Qty. in Lakh Tonnes
TRANCHE I
30.3
5.476
18.07
24.52
9.21
37.56
0.96
0.012
1.25
9.9
0.05
0.51
74.32
14.856
20.0
TRANCHE II
62.1
21.285
34.28
36.10
23.396
64.81
0.730
0.1806
24.74
29.065
8.599
29.59
55.086
40.9
SUPP. TRANCHE
6.661
1.65
24.96
0.40
0.392
98.00
10.58
6.135
57.99
17.59
8.177
46.5
TRANCHE-III
5.10
4.56 90
9.00
8.87 99
4.21 47
23.10
17.65 76
104.16
32.97 32
70.02
41.86 60
1.69
0.1926 11
58.4
18.99
249.5
95.7 38
4.5

17. OFFERED QUANTITES (SETOR WISE/MINE WISE/GRADE WISE) IN TRANCHE-III (PRESENT AUCTION OF LINKAGES)

18. AUCTION OF LINKAGES- Tranche III- SPONGE IRON
SOURCE WISE OFFERED QTY FOR SPONGE IRON SUB SECTOR
S.NO
SOURCE(MINE IN CASE OF ROAD, CHP/ RLY SDG IN CASE OF RAIL)
MODE
GRADE & TYPE
SIZE
QTY IN TONNES
RESERVE PRICE IN RS /T
SECONDARY SOURCE/BACKUP MINE(TO BE USED IN CASE OF FORCE MAJEURE EVENT)
GRADE & TYPE (SECONDARY SOUR CE) 1
RK-6 MINE (SRIRAMPUR AREA)
ROAD
G9-ROM -
75,000
2800
RK-5
G9-ROM/ ROAD 2
MNG OC II Extn.PH2 (OC IV)
G7-CRR
-250mm
100,000
3160
G9 CRR/ ROAD 3
RK-5 MINE (SRIRAMPUR AREA)
RK-6
TOTAL
250,000
Willing Road customers can take Coal through Rail mode also
NB : The Reserve price is as per Price Notified for Non-Power sector customers.
CRR - Crushed
SLK - Slack
ROM - Run of Mine
RND - Round

19. The scheme documents and model FSA are avilable in SCCL website: www
The scheme documents and model FSA are avilable in SCCL website: of linkages and also on MSTC website (mstcecommecrce.com) Pl contact for any further clarification: NV Rajashekar Rao DGM/SCCL : T.Srinivas DGM/SCCL : Sri Vikas Jaiswal MSTC:

20. THANK YOU 20