Coal India Ltd (CIL), the largest coal producer in the country, has reported a steady rise in coal dispatch for power sector, reflecting a strong demand restoration post COVID-19 led slowdown.
Company’s coal dispatch to power plants increased 8% m-o-m to 38.5 mn t in Oct ’20 compared with 35.74 mn t in Sep ’20, thus attaining new high in terms of monthly coal supplies for FY ’21. Moreover, the dispatch was also recorded 14% higher on the year from 33.91 mn t in Oct ’19.
Higher dispatch came on the back of gradual rise in coal-fired generation which incidentally recorded its highest y-o-y growth for the fiscal, as it increased 15% on the year to 82.62 BU in Oct ’20 against 72.11 BU in Oct ’19.
Besides, the elevated supplies were also supported by demand for coal restocking induced by the sharp fall in inventory levels seen at the power stations. Data provided by CEA indicates that coal stock at power plants was assessed 33.94 mn t at the end of Oct ’20, which has reduced by nearly 11 mn t since the beginning of this fiscal.
Still recovering from the aftermath of the industrial slowdown, total dispatch was down 7% y-o-y to 236.97 mn t during Apr-Oct ’20 period.
Emphasis to non-power sector:
With ample coal available at its pit-head mines, CIL has focused on enhancing coal supplies for the non-power sector by means of sales conducted via various auction schemes.
In this regard, the company has also included a new auction outlet called special spot for coal importers, under which 1.6 mn t of coal was booked during Oct ’20.
In total, dispatch to non-power sector increased by whooping 80% y-o-y to 12.03 mn t in Oct ’20, thereby taking the overall sum to 68.7 mn t in the first 7 months of this fiscal, up 10% from the year-ago period.
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