Coal imports by Indian power utilities have decreased 35% y-o-y to 22.25 mn t during the first half year period of FY ’21 (Apr-Sep ’20) against 33.92 mn t in Apr-Sep ’19.
Country’s overall coal demand has been jolted by the COVID-19 led slowdown particularly in the power sector, but the plants have shown greater appetite for indigenous supplies than imports.
Data provided by power ministry shows that coal receipt from domestic sources dropped 11% y-o-y to 242.9 mn t in the six month period, however, its share in the total volume increased from 89% to 92%.
Rise in coal consumption in line with the elevated output saw power plants attain a 4-month high import of 4.03 mn t during Sep ’20, still it was marked 23% lower on the year from 5.23 mn t in Sep ’19.
Sector-wise coal imports:
Coal intake by Central and state run power plants decline to major extent, while the drop in case of private plants was limited to 29% in the half year period, on account of essential imports taken by plants who are designed to run on imported coal.
Notably, imports by plants for blending purpose reduced to half during the six month period of FY ’21 marked at 5.52 mn t, whereas plants designed to run on imported coal had taken the bulk volume in the total imports recorded at 16.6 mn t, which chiefly includes private power plants.
| Sector | Plants based on Domestic Coal | Plant Based on Imported Coal | Total Imports | ||||||
| H1 FY’21 | H1 FY’20 | % Change | H1 FY’21 | H1 FY’20 | % Change | H1 FY’21 | H1 FY’20 | % Change | |
| Central | 0.59 | 1.86 | -68% | 0.0 | 0.0 | – | 0.59 | 1.86 | -68% |
| State | 1.85 | 3.92 | -53% | 0.2 | 0.6 | -70% | 2.03 | 4.53 | -55% |
| Private | 3.08 | 5.91 | -48% | 16.4 | 21.6 | -24% | 19.53 | 27.53 | -29% |
| Total | 5.52 | 11.70 | -53% | 16.6 | 22.2 | -25% | 22.15 | 33.92 | -35% |
Source: Power ministry | Quantity in mn t
Adani power’s Mundra plant was highest coal receiver with imports of 6.01 mn t followed by Tata Power’s Coastal Gujarat plant who had procured 4.98 mn t coal during the period.
Apart from subdued demand, upsurge in inventories at power plants has also affected power plants’ coal sourcing, but with a steady decline in stock levels assessed at a 9-month low of 38.16 mn t at the end of Sep ’20, coal demand from the power sector is expected to improve.
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