India’s coal mining giant CIL, has recorded a fall in pit head coal stock for the second successive year at the end of FY19. However, despite witnessing lowest inventory in the past 4 years, the coal company has claimed that there is enough coal in the system to meet the rising demand in the country.
Data provided by CIL indicate that coal inventory at its mines have came down 2% on the year, marked at 54.4 MnT at the end of FY19 as against 55.6 MnT in FY18.
Apart from accumulating coal stock at its mines, CIL had scripted a new high in terms of coal supplied to the thermal power plants by dispatching 488 MnT coal in FY19.
Consequently, combined stock at the thermal power plants has reached a 25-month high of 34.554 MnT at the end of Mar’19.
Moreover, of the power plants having coal linkages with CIL, none of them were in critical or super-critical list of CEA for want of coal at the end of FY19. Notably, the number of such plants at the end of FY18 was 28.
Ultimately, CIL had ensured that the power stations are having adequate coal stock to tackle the elevated power demand in summer. At the same time the power plants could also rely on CIL’s available coal stock to replenish their own inventories.
Better to Have Lower Coal Stock?
A lower pit head coal stock in mines at the end of FY19 in comparison to the stock levels held in FY17, is actually more fruitful for CIL to manage its production schedule for the upcoming months.
Apparently back in FY18, the accumulation of high coal stock had required CIL to regulate its production volume. At a time when power sector was also not taking part of their coal supply.
Consequently, when the demand for power had increased, power plants were forced to burn existing coal inventory in hand, resulting in a fast depleting of stock which was later replenished by an increased rate of coal imports.
However, with a nominal coal stock this term, CIL would be in a better position to manage its production schedule for FY20.
Improvement in Non-Power Sector’s Coal Supply Still Desired:
CIL had breached the 600 MnT mark in coal production and off-take for the first time in FY19. However, the decline in non-power sectors’ coal supply had somewhat reduced this achievement.
CIL’s coal supply to non-power sector had fell 5% Y-o-Y to 120.1 MnT in FY19.
In order to elevate its coal dispatch, CIL has reportedly completed Tori-Shivepuri line and Jharsuguda-Barpalli-Sardega rail link. While CERL phase-I track linking of the first 44 km has also been carried out.
Following the stabilisation of power sector’s coal availability and development made in rail infrastructure, CIL is expected to improve its coal supply for non-power sector as well.
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