Coal India Ltd (CIL) has envisaged to augment its coal supplies to the power sector by 9% Y-o-Y to 530 MnT in FY20. The increased supply would help in softening the power prices and reduce imported coal intake of the power stations.
The coal miner has been progressively raising its supply for power sector, with a staggering amount of 488 MnT coal delivered last term in FY19.
However, amid an elevated demand for electricity, state sector power plants that normally depend on domestic coal, had recorded 138% rise in coal imports during FY19.
Besides, India’s largest power company, NTPC, had also witnessed 3-fold increase in coal imports.
A positive growth in CIL’s coal supply to power sector was further aimed to pull power station out of critical situation, but it was attained at the expense of reduced supply for non-power sector.
Notably, CIL’s coal supply to the non-power sector was down 5% Y-o-Y to 120.1 MnT in FY19.
It is expected that coal supplies to non-power sector would gradually increase with stabilisation of supplies to power houses.
NCL’s Annual Target:
Northern Coalfields Limited (NCL), the subsidiary of CIL located in Singraulli, has planned to supply 92.8 MnT coal to the power sector in FY20. The coal company had supplied 88.5 MnT coal in FY19.
NCL has been assigned the coal production and dispatch target of 106.50 MnT each for FY20.
By producing and dispatching 101.50 MnT and 101.60 MnT of coal respectively during FY19 it became the third company in the country to have produced and dispatched 100 MnT coal in a year.
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