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CIL faces heat from renewables

Mint Mumbai

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March 13, 2026

Coal India Ltd’s (CIL) shares hit a new 52-week high of ₹447.4 on the NSE on Thursday, gaining over 5% when the Nifty 50 index declined almost 1%, possibly on expectations of higher prices at its e-auctions as global coal prices rise due to the West Asia conflict.

- Ashish Agrawal

The flareup in oil and gas prices is spilling over to the coal market. Higher global coal prices would hurt domestic import volumes and push CIL’s e-auction premiums and offtake higher.

The state-owned company sells some of its output through e-auctions at market-determined prices, in addition to fuel supply agreements (FSA) with power producers. CIL’s e-auction premiums had risen to over three times the FSA price in the September 2022 quarter after the Russia-Ukraine war began, against a long-term average of about 60%.

The global coal market also firmed up after Indonesia cut its production quota for 2026 by almost 25% in January to support falling prices. Indonesia also increased its domestic sales obligation to 30% from 25%, reducing volumes available for exports.

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