Coal supplies from state owned CIL to the country’s coal-fired power plants extended the growth on monthly basis, but had fell for the seventh straight month Y-o-Y during Nov’19.
Data provided by Coal Ministry showed that CIL’s coal dispatch to power sector had increased 15% on the month to 38.8 MnT in Nov’19, from the levels notified in the previous month. However, supplies continued its decline on Y-o-Y, as it fell 10% from 43.1 MnT in Nov’18.
The coal company has bemoaned seasonal fluctuation in production for the subdued coal supplies. Apparently, coal supplies to power sector have fallen 9% Y-o-Y to 291.4 MnT during the first 8 months of FY20 (Apr-Nov’19) as against 320 MnT recorded in Apr-Nov’18 period.
“This year the monsoon severely dented our production especially in the month of September, inundating our mines” admitted an official of the company, adding “the company has the resilience to bounce back and we are confident of getting back on track ramping up production and stepping up supplies”.
Meanwhile, CIL has justified its claim to increase supplies from Oct’19 onward as the company had managed its highest coal output for FY20 marked at 50.02 MnT during Nov’19.
Power plant’s coal supply from Singareni Colleries Company Ltd (SCCL) had also jumped 10% on the month to 4.6 MnT in Nov’19, although it had fell 6% Y-o-Y from 4.9 MnT in Nov’18. SCCL’s total dispatch was down 2% Y-o-Y to 34.4 MnT in the 8-month period of FY20.
In order to reduce dependence on CIL and SCCL for coal availability, coal ministry has aimed to boost domestic output by speeding-up allocation of mines to the eligible end-users. This includes approval of 5 mines through auctions, besides raking up 6 mines for allotment which is currently under consideration. In addition, two coking coal mines were recently allocated to PSU’s to support coal needs of steel sector.
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