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Forward eAuction of coal

Mandate

CIL gave mandate to coaljunction to conduct Forward eAuction of coal to meet the demands of consumers who plan their coal purchase for an entire year based on the four financial quarters.

Objective

  • To cater to the needs of consumers who plan their purchase way in advance. The forward eAuction of coal will also provide equal opportunities to all intending coal consumers in India to purchase coal for their own consumption as per requirement and at a pre-determined price through the process of on-line bidding.
  • To generate additional value for the client.

Strategy Adopted

A list of existing consumers was obtained from CIL and its subsidiaries to identify prospective clients.Coaljunction also used its existing database of more than 10000bidders for market making purpose.

This was followed by aggressive market making,road shows all over India and continuous follow up with prospective consumers for fulfilling documentation requirements. Coaljunctional so got CIL to simplify its documentation requirements so as to make the registration process easier for consumers. Forward Auction moduleand Digital Signature application were also developed for successful conduction of the Forward eAuction.

Achievements

Team coaljunction conducted Forward Auction for 6 subsidiaries of CIL and as of now there are more than 250 consumers who have registered for this service. Transaction value of worth Rs 1818 crore has been achieved till date. The consumers are also very satisfied with the service provided by coaljunction.

Business challenges

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  • Documentation requirements of CIL was stringent.
  • Getting sufficient number of consumers.
  • Demand for the products offered was low.

The CoalJunction approach

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  • CIL was approached to ease the documentation norms
  • To popularise Forward auction consumer meets were arranged across thecountry
  • Focussed market making activities for forward auction

Benefits to the client

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  • Bookings increased in forward auction leading to higher revenue for CIL

Testimonial

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I have noted that mJunction has become the world's largest marketplace for steel, and the goal set to bring in more transformations. mJunction team deserves to be complemented on these achievements. R. Gopalakrishnan Executive Director, TATA Sons Ltd