<article><p class="lead">India has delayed the scheduled auction of coal blocks for commercial mining following a sharp increase in Covid-19 cases in the country.</p><p>The federal coal ministry has issued a revised schedule for the auctions, with final bidding process listed for 26 July-11 August. The final or financial bidding was earlier scheduled to be held between 28 June-28 July. The surge in coronavirus cases is weighing on the response from the industry to the auction round <a href="https://direct.argusmedia.com/newsandanalysis/article/2200331">launched in March</a>. The ministry aims for the revised schedule to give some more time to prospective bidders to evaluate their plans, including a visit to respective blocks, a senior ministry official told Argus.</p><p>The Covid-19 delay clouds India's broader plans to boost its domestic output, undermining its ambition to steadily increase output to 1bn t by 2023-24 and slash imports. Output at state-controlled Coal India has already fallen during this year's first quarter, logging the second straight year-on-year fall in the 2020-21 fiscal year that ended on 31 March. </p><p>The pandemic may lead to further changes in the schedule of the auction for 67 blocks identified for the latest round. The mines listed to be auctioned are spread across six key coal-bearing states, with the curbs on movement affecting plans of executives to travel to the mines before finalising their proposals.</p><p>The coal ministry <a href="https://direct.argusmedia.com/newsandanalysis/article/2205534">postponed a pre-bid conference</a> last month with expectations of weaker attendance for the online interaction, at a time when several officials at the ministry as well as in the industry contracted Covid-19.</p><p>The curbs to combat the pandemic in India are localised and restricted to respective states and regions. The absence of a strict nationwide lockdown has ensured some business and industrial continuity but at reduced capacity.</p><p>National coal-fired generation is likely to show signs of easing in May on a month-on-month basis as industrial operations are curtailed, pressuring coal demand. But coal consumption this month may be higher from a year earlier mainly because the low base of May 2020 when the nationwide lockdown dented electricity and coal consumption.</p><p>There are limited enquiries for seaborne coal from India. But thermal coal imports remain under pressure after <a href="https://direct.argusmedia.com/newsandanalysis/article/2176187">contracting in 2020</a>, with higher freight rates and a spike in seaborne prices dampening demand.</p><p>The GAR 4,200 kcal/kg (NAR 3,800 kcal/kg) price on 14 May was assessed $2.18/t higher from a week earlier at $55.98/t fob Kalimantan, hitting a fresh decade-high.</p><p class="bylines">By Saurabh Chaturvedi</p></article>