CIL Coal Dispatch to Power Sector Rises 15% Y-o-Y in Q1 FY19

Coal India Ltd (CIL) has attained a growth of 15% in coal dispatch to the power sector during the first quarter of FY19. According to the data provided by Coal Ministry, CIL has dispatched 122.2 MnT coal to the power sector in Apr’18-Jun’18, against 106.5 MnT in Apr’17-Jun’17.

CIL’s monthly dispatch to power plants stood 39.8 MnT in Jun’18, up 14% higher on the year from 35.1 MnT in Jun’17.

The data for dispatch was already provided by the Minister of Coal, Mr. Goyal, while answering to a question in Lok Sabha.

Commenting on the current scenario of coal supplies to power plants, Mr Goyal has said that the growth in dispatch of coal to power sector has helped coal based generation to achieve positive growth of 5.3% in the first quarter of FY19, which was 101.3% of programmed generation for coal based power.

Singareni Collieries Company Ltd (SCCL) has also recorded positive growth of 7% Y-o-Y in coal dispatch to the power sector. The company had dispatched 13.8 MnT coal in Apr’18-Jun’18 against 12.9 MnT in Apr’18-Jul’18.

CIL Coal E-Auctions:
Despite recording remarkable growth in coal dispatch to power sector, which was nearly 80% of the total coal dispatch in Q1 FY19, the coal stock at power stations has remained a cause of concern for CIL.

One of the reason behind the deteriorating coal stocks been the logistic issues which has impacted coal supply to the power plants. Whilst coal supplies to the non-power also get affected when CIL makes an effort to increase the supplies to power sector.

In an effort to secure long term coal supplies, CIL’s coal linkage auction has received overwhelming response amongst the non-power sector. Media reports have informed that 88% of the offered coal which accounted to 6.38 MnT has been booked in the first phase of Tranche IV linkage auction organised for sponge sector.

The second phase of linkage auction offer sales of 3.6055 MnT coal for cement sector which has started from 25 Jul’18.

Regarding CIL’s e-auctions for short term coal supplies, data from Coal ministry report shows that 3.62 MnT coal was allocated in spot auction in Jun’18. Allocated quantity was 13% higher on the year compared with 3.21 MnT in Jun’17.

No coal was allocated in Special forward e-auction for power sector, while 1.50 MnT coal was allocated in exclusive e-auction for non-power sector during Jun’18.

Source: Coal Ministry Report
Quantity in MnT