Coal Supply by state owned-CIL to the power sector registered a decline of 19% on the year during Oct’19, thereby extending its y-o-y fall for the sixth straight month.
Data provided by power ministry indicate that CIL’s coal dispatch to power sector had decreased to 33.8 MnT in Oct’19 as against 41.9 MnT in Oct’18. However, supplies were marked 19% higher on the month from 28.3 MnT in Sep’19, as it managed to overturn the monthly decline seen in recent times.
CIL’s coal off-take has been primary affected by a subdued coal production which was also exacerbated by extended rains. Consequently, coal supply to power sector was down 9% Y-o-Y to 253 MnT in the first 7 months of FY20 (Apr-Oct’19) compared with 276.8 MnT in the year-ago period.
Meanwhile, the short-fall in coal supply doesn’t seem to have much influence on coal-fired power plants’ performance, as the demand was dampened by a slowdown in industrial activity. Apparently, power generation from coal-fired stations was noted 2% lower on the year at 565.36 BU in the Apr-Oct’19 period, data provided by power ministry showed.
With power output from hydro sources set to recede following its peak season during monsoon, coal-fired power generation is expected to rebound in order to cater the residual demand by burning more coal at its premises.
As on 12 Nov’19, combined coal stock at the power plants (having coal linkages) was assessed at 21.34 MnT, sufficient for 13 days of power generation.
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