Coal India Ltd (CIL), the state-owned miner, which had brought down the reserve price on coal sold through auction to nearly zero due to Covid-19 induced poor demand, is now looking to increase the reserve price.
The CIL board has approved a reserve price of up to 10 per cent for the auction in October, a senior marketing executive told BusinessLine on conditions of anonymity.
“When the pandemic struck and the lockdown was announced, we realised that there is going to be a drop in demand and a cash crunch for companies, so we brought down our reserve price to almost zero for both the regulated and non-regulated sectors. But right now, we feel demand is picking up, so we will try to increase the reserve price for the auction,” the official said.
Based on the response garnered in the auction in October and the amount of premium earned, CIL