Coal India Ltd (CIL) has registered decline in coal dispatch for the second straight year as sharp fall in electricity demand lowered the requirement at the power houses.
Data provided by coal ministry showed that coal supply went down 4% y-o-y to 445.69 mn t in FY ’21 against 465.72 mn t in FY ’20. It is pertinent to note that power plants had considerably reduced their coal intake against the entitled quantity due to the demand stagnation led by COVID-19.
Beginning to the FY ’21 got-off to worst possible start as intensive lock-downs being imposed to curb the spread of COVID-19 resulted in drastic fall in electricity demand from industrial as well as residential sector. Consequently, coal supply was particularly affected in the first half of the fiscal.
Gradual revival in economic activity provided boost to the coal supply. However, the increase was short-lived with the arrival of winter season which put a break on coal consumption at a time when the power plant were already equipped with sufficient coal inventories.
A late resurgence was seen in Mar ’21 with the early onset of summer when soaring temperature resulted in an increased demand for coal from the power sector.
Dispatch to the tune of 47.59 mn t was the highest monthly total for FY ’21 and had registered a double-digit y-o-y growth after a gap of 5 months, as it helped to reduce the deficit in overall coal dispatch.
Momentum likely to continue:
The second wave of COVID-19 has more severe affect on the lives of the common people nationwide, but it has not had a significant impact on the coal industry.
Data provided by power ministry indicates that power consumption has averaged 4015 MU during 1-18 Apr ’21, which is more than monthly average of 3969 MU registered in Mar ’21.
Due to higher coal burning, inventories at power plants have begun to recede at a faster rate thus providing much needed relief to the CIL subsidiaries so as to assist the plants which are in desperate need of coal supply.
Notably, there are around 36 power plants which are currently having coal stock less than 7 days contrary to 5 such power plants registered in the year ago period.
As on 27 Apr ’21, coal stock was assessed at 24.27 mn t sufficient for 12 days of power generation, down 52% y-o-y from 50.52 mn t when the available stock was adequate for 31 days.
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