Cement cos to have cautious on coal auction
With the government is expecting aggressive bids for all 46 coal blocks, whose reallocation will start on February 14, the cement sector is likely to have a calculative approach.
For coal block assigned to end-use power generation, there is likely to be aggressive bidding. However, for the block to be apportioned to the unregulated sector - steel, cement and captive power - the cement sector is likely to step carefully.
Market experts are of the opinion that in the past, the cement sector has received coal linkages with sub-standard coal grade. That necessitated a greater dependency on costly imported coal and coal procurement from the open market.