India: CIL’s Coal Dispatch to Power Sector Falls 3% Y-o-Y in Q1 FY20

Coal India Ltd (CIL) has reported a 3% decline in coal supplied to the power sector during the first quarter of FY20. As per the data provided by Coal Ministry, CIL’s coal dispatch to power stations was 119.6 MnT in Q1 FY20 compared with 123.5 MnT recorded in Q1 FY19.

During Jun’19, CIL’s monthly coal supplies had fell below the 40 MnT mark for the first time in the past 9 months, recorded at 38.7 MnT.

The coal company has started the new financial year with flat production growth, wherein output of 137 MnT recorded in Q1 FY20 has seen only a marginal increase of 0.1% over the corresponding period in FY19.

The sluggish production growth was primarily accounted to the slowdown in overburden removal (OBR), amid delay in finalization of contracts. Consequently, the immediate fall-out of flat production has been a decline in coal supplies to thermal power plants during the quarter period.

Singareni Collieries Company Ltd (SCCL), on the other hand, had managed to post a slight increase in coal dispatch to power plants, with supplies rising to 14 MnT in Q1 FY20 against 13.8 MnT in Q1 FY19.

CIL’s Coal Sales in E-Auction Drop 42% Y-o-Y in Q1 FY20:
CIL’s coal sales also remained subdued during the first quarter of FY20, with total allocation falling 42% Y-o-Y to 16.27 MnT against 28.05 MnT recorded in Q1 FY19 period.

Allocation in Spot e-auction dropped 29% Y-o-Y to 7.42 MnT in Q1 FY20 period, with coal volume falling to a 7-month low of 2.07 MnT during Jun’19.

Coal sales from Special forward e-auctions was down 53% Y-o-Y to 6.65 MnT in Q1 FY20, as it continued to recover from the hefty allocation being made in the year-ago period.

Remaining coal volume was sold in the exclusive e-auction scheme, while no allocations have been made in the special spot auction till date.

Source: Coal Ministry
Quantity in MnT