Domestic miner Coal India Ltd (CIL) has surpassed the annual coal dispatch volume of FY’21 (Apr’20-Mar’21) with almost a month-and-a-half remaining in the ongoing fiscal FY’22.
The company supplied 577.18 mnt of coal as on 17 Feb’22, thus bettering dispatch volumes of 574.5 mnt recorded in FY’21.
It is important to note that four of its subsidiaries, namely, Mahanadi Coalfields Ltd (MCL), Northern Coalfields Ltd (NCL), Bharat Coking Coal Ltd (BCCL) and Western Coalfields Ltd (WCL) have already attained the previous fiscal’s dispatches. In the process, MCL has become only the second subsidiary to the cross 150-mnt dispatches mark in a fiscal year.
Subsidiary-wise Coal Dispatch
Quantity in mnt | Note: NEC has temporarily suspended mining since Jun’20.
Demand revival key to dispatches growth
Post-registering its highest-ever dispatches of 608.14 mnt in FY’19, CIL’s coal supplies were down in the next two fiscals. The downfall in FY’21 was even more pronounced as it was led by the demand disruption due to Covid.
However, with revival in economic activities, coal-based power generation saw unprecedented surge during FY’22, thus helping the company step in with increased supplies.
Till 16 Feb’22 of the current fiscal, CIL’s dispatches to the power sector were up 23% y-o-y to 468.4 mnt compared to 381 mnt of the corresponding period last year. In fact, the previous fiscal’s dispatch volumes of 445 mnt were attained as of 3 Feb’22, nearly two months before the current fiscal’s closing.
The company has set a target of 548 mnt of coal dispatches to the power sector in FY’22, as per projections of the Central Electricity Authority.
With supplies to the power sector on the rise, the miner is also keen to augment coal dispatches to the non-power sector.
Currently, the company is supplying coal to the non-power industries at an average of 0.34 mnt/day, which is significantly higher than the lows of 0.27 mnt/day seen in Sept’21 when coal movement was hampered as a result of the monsoon.
Driven by robust demand from both power and non-power sectors, the company is poised to finish FY’22 with a record breaking performance.
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