Coal India Ltd has reported a 15% drop in monthly coal production during Jul’19, as a consequence of the lower output seen from its chief contributors-MCL and SECL.
CIL’s coal production was recorded at 38.05 MnT in Jul’19 against 45.08 MnT in Jun’19, which was also 5% lower on the year from 40.58 MnT in Jul’18.
The onslaught of monsoon generally affects the mining operations; however, ongoing strike activity at MCL had further lowered the production recorded for the month. Notably, MCL’s Talchar coalfields has witnessed shutdown since 24 Jul’19, resulting in a 23% decline recorded in its total monthly coal output of 8.73 MnT for Jul’19.
South Eastern Coalfields (SECL) emerged as the largest coal producing subsidiary with output of 10.32 MnT in Jul’19, but its total output in the first 4 months of FY20 (Apr-Jul’19) has fallen nearly 14% Y-o-Y to 44.65 MnT after delay in finalizing contracts had resulted in tepid overburden removal.
SECL along with BCCL and NECL were the CIL’s subsidiaries to have noted a negative growth in coal production in the 4-month period.
During Apr-Jul’19, CIL has attained total production of 175.46 MnT, which had fell 1.1% Y-o-Y from 177.43 MnT noted in Apr-Jul’18 period.
CIL’s Coal Off-take:
CIL’s coal off-take in Jul’19 dropped 4% M-o-M to 46.82 MnT, which was also 3% lower on the year from 48.19 MnT in Jul’18. Interestingly, it was the third consecutive month in which CIL’s coal supplies had fell on a y-o-y basis.
Apparently, with improved coal stock levels at power plants, demand for coal has come to a plateau, thereby lessening the pressure on part of CIL to push more coal to the power sector.
Coal stock at the power plants stood 53% higher on the year at 30.63 MnT by the end of Jun’19, as per the data provided by power ministry.
CIL’s total coal dispatch of 200.11 MnT during Apr-Jul’19 was recorded 0.8% lower on the year from 201.66 MnT noted in Apr-Jul’18 period.
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