CIL has reported a marginal growth in coal production as the output was trimmed on account of lower off-take and piled-up inventories.
The company had produced 41.4 MnT coal against the monthly target of 50.71 MnT in May’20, which increased 3% M-o-M from 40.38 MnT in Apr’20. However, the production fell 11% Y-o-Y from 46.69 MnT noted in May’19.
Despite several measures kept in place to incite higher coal lifting, subdued power demand failed to draw a considerable rise in CIL’s dispatch, which was again noted lesser than the corresponding monthly production volume.
Coal off-take in May’20 was 39.95 MnT compared with 39.09 MnT in Apr’20, but had decreased 23% Y-o-Y from 52.1 MnT in May’19.
Subsidiary-wise performance:
MCL remained the largest coal producer during the month. Though, only NCL had managed a Y-o-Y growth in production among the subsidiaries.
In terms of dispatch, except NECL, all the remaining subsidiaries had dispatched lower coal than the set target for May’20, while posting a hefty decline from the levels seen in the year-ago period.
| Subsidiary | Production | Dispatch | ||||
| Target | Actual | Y-o-Y Change | Target | Actual | Y-o-Y Change | |
| MCL | 13.00 | 11.22 | -4% | 13.64 | 10.25 | -20% |
| NCL | 9.37 | 9.2 | 4% | 8.68 | 8.16 | -8% |
| SECL | 13.52 | 9.15 | -23% | 13.95 | 9.87 | -25% |
| WCL | 4.10 | 3.94 | -4% | 4.12 | 3.07 | -34% |
| ECL | 3.92 | 3.43 | -13% | 3.97 | 3.38 | -23% |
| CCL | 4.13 | 2.89 | -30% | 4.59 | 3.91 | -32% |
| BCCL | 2.65 | 1.56 | -27% | 2.17 | 1.24 | -52% |
| NECL | 0.02 | 0.015 | -33% | 0.02 | 0.026 | -20% |
| CIL | 50.71 | 41.4 | -11% | 51.14 | 39.9 | -23% |
Quantity in MnT
Focus on raising OBR amid high inventory levels:
In the dire circumstances where CIL’s operations have been adversely affected, the company is currently working on overburden removal (OBR) to be prepared to ramp-up production until demand improves.
OBR of 124.59 cubic meters was attained in May’20, which grew 9% on the month from 114.43 cubic meters reported in Apr’20, aided by a significant growth noted from entire subsidiaries.
Resurgence in power demand with increase in domestic electricity consumption and gradual pick-up in industrial activities is expected to lend a helping hand to CIL, whose coal stock has risen at a steady rate.
Incidentally, inventory levels have reached 77.8 MnT at the end of May’20 which was assessed at 41.84 MnT in the year-ago period.
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