Coal India Ltd (CIL) has reported coal production of 47.14 MnT in May’18, with an increase of 5% M-o-M from 44.84 MnT in Apr’18. On the yearly basis, Coal production had increased 16% from the output of 40.725 MnT recorded in May’17.
However, the miner had failed to achieve its monthly production target of 51.16 MnT set for the month. Among the 8 subsidiaries of CIL, production at CCL and MCL had significantly fallen behind its monthly target. CCL had produced only 79% coal of its targeted value while MCL had achieved 80% coal production in May’18.
Amid the growing concern of coal shortages at the power plants, CIL has again posted higher coal offtake than the corresponding monthly production in May’18.
CIL’s coal offtake stood 52.86 MnT in May’18, which was 12% more than the corresponding monthly production. Coal offtake had increased 4% M-o-M from 50.97 MnT in Apr’18, which was also 14% higher on the year from 46.41 MnT in May’17.
Increased demand for power in the summer season has incite higher coal burning at the thermal power plants, due to which coal stock at the plants have continue to decline.
As per the latest data provided by CEA, coal stock at the power plants (having coal linkages) was recorded at 14.825 MnT as on 27 May’18, which was 2% lower on the week compared with 15.129 MnT as on 20 May’18.
In order to revive the situation at the power plants, CIL is again seemed to be favouring the power producers for coal supply. Earlier, market reports had claimed that Vedanta resources was facing shortage of coal at its Aluminium smelter, as MCL had halted deliveries to all non-power customers following a government directive to prioritise the electricity industry. Moreover, various steel makers have also raised their voice against lack of rake availability for iron ore movement.
Subsidiary-wise Performance in May’18:
SECL remained the largest coal producing subsidiary, which had also dispatched the highest coal quantity in May’18.
MCL, on the other hand, had not only failed to achieve its monthly target, but its production and offtake had also fallen over the month.
Source: CIL | Quantity in MnT
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