CIL’s Coal Dispatch to Power Sector Rises 6% Y-o-Y in Feb’20

Coal supplied by CIL to the power utilities has increased 6% on the year to 42.68 MnT in Feb’20 compared with 40.1 MnT in Feb’19.

Data provided by Coal Ministry indicate that CIL had dispatched an average of 1.47 MnT coal to the power sector on daily basis in Feb’20, which was marked 5% higher on the month from 1.39 MnT/day recorded in Jan’20.

The coal company has taken adequate measure to ensure stock levels at the power stations are comfortably placed in order to meet electricity demand in the summer months. Recently, the thermal plants had attained their highest ever inventory sufficient for 23 days of power generation, which was a day more than the mandated level set by CEA.

Continuing the remarkable growth, power plants have registered new highs in terms of coal accumulation in line with the higher availability.

As on 19 Mar’20, combined stock at power plants (having linkages) was assessed at 40.695 MnT, with only a single plant having critical stock of less than 7 days.

Total Coal Dispatch in FY20:

Despite the robust coal supplies seen recently, a slow overall demand has limited the prompt coal requirement. Incidentally, total coal dispatch to the power sector in the first 11 months of FY20 (Apr’19-Feb’20) has decreased 6% Y-o-Y to 419.7 MnT as against 445.71 MnT noted in the year-ago period.

Taking cue from the subdued demand in power sector, CIL has liquidated arrear rakes of non-power sector in order to augment coal supplies to them. In the 11-month period, CIL’s coal dispatch to non-power sector has increased 6% Y-o-Y to 108.57 MnT as against 102.82 MnT recorded in the year-ago period.

Non-power sectors’ coal receipt in the month of Feb’20 was assessed 9% higher on the year at 12.39 MnT.

Witnessing the vigorous efforts made by CIL to get close to its annual coal production target, it is certain that the miner would accumulate more coal volume in the system (coal stock at pithead and at the power plants) to minimize imports. The due cause is likely to be supported by a weakened demand for electricity arising from Industries, which are restraining their output in the wake of coronavirus outbreak.