India: CIL Performance during Jul’17

Ministry of Coal has released monthly performance report of the country’s largest coal miner Coal India Ltd during Jul’17, which has been summarised below.

Coal Production and Dispatch:
CIL coal production was recorded at 36.6 MnT in Jul’17, the company managed to achieve 88.3% of the target of 41.5 MnT coal production during the month, according to the report.

Coal dispatch during Jul’17 has outpaced production for the fourth straight month in FY18, indicating CIL’s efforts to clear excess stocks.
Coal dispatch had increased 7% Y-o-Y to 44.3 MnT in Jul’17 compared with 41.4 MnT in Jul’16.

Coal Dispatch to Power Plant:
Coal dispatch to power plants has declined 10% M-o-M to 31.1 MnT in Jul’17, compared with 34.6 MnT in Jun’17. Also, dispatch in Jul’17 was marginally lower than 31.3 MnT attained during Jul’16.

Coal stock at power plants has fallen to 12 MnT as on 28 Aug’17, enough for 9 days of power generation.

However, Officials from CIL have blamed power plants for the drop in coal stocks, citing that the power companies had not lifted coal during Apr’17-Jun’17 period according to the contract. And now were facing stock crunch, when power demand had spiked during Jul-Aug period.

Moreover, CIL had itself restricted coal production in order to liquidate excess coal stock.

Coal E-Auction:
CIL has allocated 3.88 MnT coal through spot auction in Jul’17, thus gaining 47% increase over notified price. Total coal allotted through spot auctions has fallen 17% Y-o-Y to 13.57 MnT during Apr’17-Jul’17, compared with 16.35 MnT during Apr’16-Jul’16.

In order to step-up supplies to thermal power plants, CIL is temporarily lowering supplies to non-power entities. The company has also floated yearly calendar for auctions, so that consumer can better align their production schedule.

In the special forward e-auction for power sector during Jul’17, CIL has allotted 1.64 MnT coal with an increase of 12% over the notified price.

Although, the monthly allotted quantity fell 33% compared with 2.45 MnT during Jun’16, total coal allotted to power sector through these auctions has increased 60% Y-o-Y to 20.03 MnT during Apr’17-Jul’17, compared with 12.45 MnT during Apr’16-Jul’16.

CIL has also conducted Exclusive e-auction for non-power sector during the month, in which 0.84 MnT coal was allotted with an increase of 9% over the notified price.

Source: MoC Report
Quantity in MnT