CIL’s Yearly Coal Supply to Power Sectors Declines

CIL’s coal supply to power sector saw a yearly decline of 7.8% in Jan’17. However, Overall coal dispatch increased yearly.

CIL, a Maharatna Company inferred by Government of India, coal dispatches  to power sector saw yearly drop to 33.38 MnT in Jan’17 compared with 36.75 MnT in Jan’16. However, Overall dispatch has increased by 6.2% to 51.35 MnT in Jan’17 against 48.36 MnT in Jan’16.

Moreover, SCCL coal dispatch has increased on yearly basis by 13.7% on the ground of quality coal supply from the latter.

The Government is constantly making efforts to substitute the imported coal with domestic coal. Yet, coal dispatch to power sector has fallen during Apr’16-Jan17 for both CIL and SCCL.

Source: Coal Ministry Report
Quantities in MnT

The statistics may come as a setback to Government’s plan to increase coal production to 1.5 BnT by 2020 which aims at reducing coal imports and to promote domestic coal in order to produce cheaper electricity. Although CIL supplies a major share of coal to power sectors and at a cheaper cost, yet power utilities are not opting domestic coal due to their low grade.

Coal Production in FY17:
CIL produced year-high 55.99 MnT coal in Jan’17 up by 6% Y-o-Y against 52.86 MnT in Jan’16, yet it was not enough to achieve its set target of 478.57 during Apr’16-Jan’17.

During the period of Apr’16-Jan ’17, CIL has produced 433.76 MnT against the set target of 478.57 MnT during the period, thus achieving 90.6% of the target set for the said period. CIL has set a coal production target of 598.61 MnT in FY17.

On the other hand, Coal production from SCCL has been increasing steadily, despite monthly fall in Jan’17. The company has produced 5.87 MnT coal in Jan’17 and has achieved its yearly target of 47.24 MnT during Apr’16-Jan ’17 by producing 48.30 MnT coal.

Source: Coal Ministry Report
Quantities in MnT