Domestic miner Coal India Ltd (CIL) supplied 264.6 coal rakes on a daily basis to the power sector during Dec’21, clocking a growth of 7% compared to 248.1 rakes in Nov’21.
Coal loading saw a rebound on a monthly basis after rakes to the power plants were slightly lowered in Nov’21 to ease the supply crunch for the non-power sector.
The company has stepped up its coal supplies post-monsoon, supported by a sizeable growth in movement by rail-mode. However, in view of the low stock position at the plants, bulk of the coal rakes are diverted to the power sector.
Notably, share of the power sector in the coal movement was 87% during Apr-Aug’21, which has gradually improved to 92% in Sep-Dec’21.
Lower allocation for non-power sector
Coal movement for the non-power sector was almost unchanged m-o-m at 24 rakes/day in Dec’21.
During the month, the company had attained its highest rake movement in FY’22, but allocation to the non-power sector still remained lower than the high of 41 rakes/day seen in Jun’21.
The non-power sector predominantly consists of cement, sponge iron, captive power plants and a host of other industries. These rely on CIL’s secured supplies via fuel supply agreements and linkages to meet their demand.
But, due to the short-fall in supply, these industries are aggressively buying coal from the auction route.
Evidently, coal sales in the exclusive auction scheme earmarked specifically for the non-power sector fetched bid price of INR 3830.19/t in Dec’21, thereby garnering premium of 130% over the assessed notified price of INR 1,667.71/t.
In contrast, bid premium over the notified price was recorded at 45% for auctions held under special forward scheme marked for the power sector during the month.
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