India: Power Plants’ Coal Imports Up 9% Y-o-Y in FY19

Coal imports by Indian power plants’ have posted a growth of 9% on the year during FY19, after witnessing a decline in previous fiscal’s intake.

As per the data provided by power ministry, coal imports by power plants had increased to 61.66 MnT in FY19 as against 56.412 MnT in FY18. Imports in FY17 were recorded at 66.055 MnT.

Adani Power (Mundra) with 13.37 MnT coal emerged as the largest coal receiver in FY19, followed by Coastal Gujarat Power (11.07 MnT), Semb Corp Gayathri Power (4.82 MnT), JSW Energy (4.74 MnT) and TANGEDCO (3.56 MnT). Altogether, these 5-utilities had accounted for more than 60% of the total import volume.

A break-up of coal imports based on the design of plants indicate that the bulk of coal was taken by plants designed to run on imported coal. In fact, these plants had imported 40.286 MnT in total during FY19, up 2% Y-o-Y from 39.369 MnT in FY18.

Remaining quantity was taken by plants which utilise imported coal for blending purpose. Notably, such plants had recorded a remarkable rise of 25% in annual coal imports during FY19.

Source: Power Ministry
Quantity in MnT

Sector-wise Coal Imports in FY19:

Coal imports by state and central government-run power producers witnessed an impressive growth in the current fiscal, but overseas purchases by private generators were stable on the year in FY19.

Private producers had accounted for the major share in total imports, however their intake had increased marginally to 51.662 MnT in FY19 as against 51.119 MnT in FY18.

Intake by central power plants rose 54% Y-o-Y to 1.625 MnT, while central power plants imports were up 97% Y-o-Y to 8.373 MnT in FY19.

Major power utilities of the likes of NTPC, MAHAGENCO, had floated tenders for supply of imported coal to meet their requirements.

Rise in Coal Inventory:

An increased demand for electricity forced power generators to step up imports amid concerns over domestic coal availability.

However, a higher coal imports coupled with elevated domestic supply towards the fiscal end has helped power plants to gain their highest coal inventory in the past 3 fiscals.

Combined coal stock at the power plants was recorded at 34.55 MnT at the end of Mar’19, which was 62% higher on the year compared with 21.32 MnT assessed in Mar’18. Closing stock at the end of FY17 was noted at 31.32 MnT.