India’s largest coal miner-CIL has registered a 16% growth in monthly coal production during Dec’19, which has helped the company to end a negative Y-o-Y growth spell seen for the past few months.
The company had recorded output of 58.02 MnT in Dec’19, thereby attaining new highs in terms of monthly coal production for FY20.
Of late, CIL had been posting a monthly rise in output volume, but, the production levels were comparatively lower than that seen in the year-ago period. Incidentally, the current month’s production was marked 7% higher on the year from 54.13 MnT noted in Dec’18, thus ending a successive Y-o-Y fall assessed in the past 5 months.
CIL has produced 388.41 MnT coal in the first 9 months of FY20 (Apr-Dec’19), down 6% Y-o-Y from 412.44 MnT noted in the year-ago period. The company has cited excessive rains across its mining regions for the production loss.
In line with the aim to boost coal output, CIL’s largest coal producing subsidiary-SECL, had crossed 500,000 MT single day production mark for the first time in FY20, as on 25 Dec’19.
However, the highest monthly output was recorded at MCL which had produced 14.36 MnT coal in Dec’19. SECL came behind MCL, with an output of 13.93 MnT coal recorded during the month.
Out of the 8 coal producing units of CIL, only CCL and NECL had posted a Y-o-Y decline in coal output during Dec’19.
CIL Coal Dispatch:
CIL had also managed a Y-o-Y growth in coal supplies during the month of Dec’19, which was recorded for the first time since Apr’19.
The coal major’s dispatch increased 2% Y-o-Y to 53.63 MnT in Dec’19, while rising 13% on the month from 47.37 MnT in Oct’19.
In order to raise coal availability beyond its own mining sources, CIL has entered into a MoU for extracting excess coal from Manoharpur block in Dec’19, which would be sold to the eligible customers.
Odisha Coal and Power Limited (OCPL), the owner of Manoharpur coal block, had already started production from the mine but was facing difficulties in transporting the coal to its end-user plant due to evacuation bottlenecks.
Subsequently, CIL had quickly moved for a mutually beneficial pact, wherein daily extraction of 6,000 MT coal from the block would not only help OCPL reduce its excess stock pile, but also enhance coal supplies to CIL’s consumers, particularly for liquidating the arrear rakes of the non-power consumers.
As a matter of fact, CIL’s coal dispatch has been off pace in FY20, which has fallen 6% Y-o-Y to 417.26 MnT in the first 9 months (Apr-Dec’19).
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