Coal demand in India has shown signs of mini-revival with an improvement noted in rakes supplied for coal transportation, which ended successive decline witnessed for the past four months.
Data compiled by CoalMint research shows that domestic coal rakes delivered in May’20 were marked 7% higher on the month at 8,128 compared with 7,570 in Apr’20. Nevertheless, the coal movement fell 35% Y-o-Y from 12,464 noted in May’19, amid COVID-19 led demand slump.
The country observed a surge in electricity consumption lately due to summer peaking at most places, which was also supported by partial resumption in industrial activities. However, brimming with over 50 MnT coal stock, power stations were seen restricting coal supplies.
A sector-wise distribution indicates that coal rakes delivered to the power plants was down 3% M-o-M to 5,545 in May’20 as against 5,690 in Apr’20.
Incidentally, supplies to the major coal recipient-NTPC had decreased 4% M-o-M to 1,214 in May’20. In fact, among the plants which had taken coal rakes in excess of 200, only DVC, Adani power and RRUVNL had recorded a growth on the monthly basis.
| Name of Recipient | May’20 | Apr’20 | % Change |
| NTPC | 1,214 | 1,261 | -4% |
| MAHAGENCO | 426 | 488 | -13% |
| DVC | 354 | 253 | 40% |
| Adani Power | 278 | 255 | 9% |
| RRVUNL | 245 | 233 | 5% |
| MPPGCL | 224 | 254 | -12% |
| WBPDCL | 216 | 289 | -25% |
Source: CoalMint Research
Quantity in MnT
Coal supplied to non-power sector:
The sizeable increase in domestic rake movement was supported by a higher intake from non-power sector, as steady lifting of lock-down enabled industries to resume their operations. The non-power sector had procured 2,583 coal rakes in total during May’20, which was assessed 37% higher on the month from 1,880 rakes/day noted in Apr’20.
In an attempt to liquidate the excess coal stock available at pit-head mines, CIL has requested both the power and non-power sectors to meet their demand through import substitution. In addition, government’s intervention has been perused to reduce railway tariff for coal transportation, in order to facilitate coal dispatch.
As on 10 Jun’20, vendible stock assessed across its various subsidiaries has reached 77.71 MnT, which has risen 92% from the levels seen in the year-ago period.
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