Coal India Ltd (CIL) has supplied 39.5 MnT coal to the power sector, which was around 82% of the overall coal dispatched in Jul’18.
The coal company has been progressively increasing its coal dispatch on the year-on-year basis to cater the rising demand from the power sector. Dispatch to power plants grew 16% Y-o-Y from 34.1 MnT in Jul’17, but were almost unchanged from the previous month’s total of 39.8 MnT recorded in Jun’18.
Total coal dispatched during the first 4 months of FY19 (Apr’18-Jul’18) stood 161.7 MnT, up 15% Y-o-Y from 140.6 MnT recorded in Apr’17-Jul’17 period.
Dispatch from SCCL:
Coal Dispatch to the power sector from SCCL (Singareni Collieries Company Ltd) was down 10% Y-o-Y to 3.7 MnT in Jul’18 against 4.1 MnT in Jul’17.
However, overall dispatch during the 4-month period period (Apr’18-Jul’18) has increased 2% to 17.5 MnT compared with the corresponding period’s total of 17.1 MnT in FY18.
Coal Sales from E-auctions Continue to Remain Subdued:
Indian power plants are the largest coal consuming sector, which require special attention from the major coal companies (CIL/SCCL).
Any shortfall in coal stock at the power stations, trigger a surge in imports from the power sector which were witnessed in previous year’s import pattern. Hence, in order to avoid any flaws in coal supplies to the power plants, CIL is continuously raising its dispatch.
As a combined efforts from the coal companies, existing coal stock at the plants have been maintained near about at 15 MnT in Aug’18. As on 13 Aug’18, data from Coal Ministry shows that the power plants (having coal linkages) were having a stock of 15.179 MnT, falling marginally from 15.244 MnT from the year ago date.
The ministry has not released the combined coal stock at the power plants for Jul’18.
The plan to improve the availability of coal to power sector has certainly come at the expense of CIL’s coal sales in e-auctions, as the coal miner has seen poor performance from its e-auctions in Jul’18.
Coal allocation in Spot e-auctions stood 2.4 MnT in Jul’18, down 38% Y-o-Y from 3.88 MnT in Jul’17. Allotted quantity was also 34% lower on the month from 3.62 MnT in Jun’18. Total coal allocated during the 4-month period of FY19 was recorded at 12.89 MnT, down 5% Y-o-Y from 13.57 MnT in same period last year.
Coal allocation in Special forward e-auctions specially entitled for power sector, were marked 25% higher on the year at 2.05 MnT in Jul’18. But, total allocation in Apr’18-Jul’18 period was down 19% Y-o-Y to 16.21 MnT.
Allocation in Exclusive e-auctions entitled for non-power sector, fell 45% Y-o-Y to 0.46 MnT which was also 69% lower on the month from 1.5 MnT in Jun’18.
With a gradual increase in coal stock at the power plants and strong growth in coal dispatches, CIL is likely to increase its e-auction volumes during the second half period.
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