India: CIL Coal Dispatch to Power Sector Down 5% Y-o-Y in May’19

Coal India Ltd has reported coal dispatch of 40.6 MnT to the power sector in May’19, as per the data provided by Coal Ministry. Coal supplies had come down 5% on the year from 42.7 MnT in May’18.

CIL had been envisaging higher dispatch to the power sector, in order to revive the stock levels at the power stations. Notably, it was the 8th consecutive month in which CIL had delivered coal volumes in excess of 40 MnT.

However, following a progressive increase in coal stock, CIL’s coal dispatch has moderately fallen in the beginning of FY20. Total coal supplies in the first two months of FY20 (Apr-May’19) was marked 3% lower on the year at 80.9 MnT, compared with 83.1 MnT in the corresponding period of FY19.

It is to be noted that power plants have maintained a healthy coal stock of 26.94 MnT as on 18 Jun’19, sufficient for 15 days of power generation. Stock levels have elevated 72% on the year from 15.7 MnT recorded on 18 Jun’18.

Besides, the number of plants in critical or super-critical list of CEA for want of coal was also reduced from 12 to 2 over the period.

SCCL’s Coal Dispatch: Singareni Collieries Company Ltd (SCCL) also suffered a downfall in coal dispatch to the power sector. Supplies during May’19 decreased 2% Y-o-Y to 4.7 MnT as against 4.8 MnT in May’18.

Dispatch in the first two month of FY20 was 9.4 MnT compared with 9.6 MnT recorded in the same period of previous fiscal.

CIL’s Coal Allocation in E-Auctions:

CIL’s coal allocation in e-auction remained subdued in May’19. The company had managed sale of 5.12 MnT coal, down 54% Y-o-Y from 11.16 MnT in May’18.

The weaker year-on-year comparison was due to exceptionally high allocation made in e-auction earmarked for power producers during May’18.

Coal allocation made in Special forward e-auction for power producers was noted 60% lower on the year at 2.72 MnT in May’19. Interestingly, a total of 14.17 MnT coal was allocated in the first two months of last fiscal, whereas only 5.77 MnT coal has been sold in the corresponding period this term.

Coal sales under spot e-auction decreased 31% Y-o-Y to 2.4 MnT in May’19, while no allocations were made in exclusive and spot e-auctions during the month.

Source: Coal Ministry
Quantity in MnT