CIL Coal Production Up 3% M-o-M in Aug’17

CIL’s monthly coal production has increased after witnessing two-month drop.

CIL has recorded coal production of 37.6 MnT in Aug’17, with an increase of 3% M-o-M in comparison with 36.64 MnT in Jul’17, as per the report provided by Ministry of Coal. Although the growth in production was minor, yet it was important for the power sector in the country.

CIL had earlier reduced its monthly output in FY18 in order to clear excess coal stock at its mines. However, when the demand for power rose in Jul-Aug period, the company was unable to cater the growing demand; as a result coal stock at many power plants had fell below the critical level.

In the period of coal shortage, CIL had regulated coal to non-power sectors in order to prioritize power plants. The overall coal dispatch may have fallen 1.41% M-o-M to 43.7 MnT in Aug’17, but, dispatch to power sector has increased 10% M-o-M to 34.3 MnT during the month. Coal to power sector was also 20% higher on the year compared with 36.8 MnT in Aug’16.

CIL is continuously monitoring coal supply to power plants and has also increase the number of rakes to supply about 80% of the total coal dispatch to the power plants on the daily basis.

As on 18 Sep’17, total dispatch of CIL was 1.31 MnT, out of which 1.05 MnT coal was dispatched to the power sector. Moreover, out of the total number of 201 railway rakes of coal dispatched to different consumers out of which 185 railway rakes were dispatched to power sector alone.

Coal E-Auctions:
CIL’s spot auction held during the month managed sales of 3.38 MnT coal, with a gain of 65% over the notified price. However, the quantity allocated was 13% lower on the month compared with 3.88 MnT in Jul’17, also declining 25% Y-o-Y compared with 4.49 MnT in Aug’16.

In the exclusive e-auction for non-power sector, 0.32 MnT coal were allocated in Aug’17 with an increase of 17% over the notified price. The allocated quantity in Aug’17 fell 88% on the year compared with 2.76 MnT in Aug’16. While the total coal quantity allocated in these auctions during FY18 (till Aug’17) has increased 98% Y-o-Y to 5.48 MnT, in comparison with 21.76 MnT coal allocated during the Apr’16-Aug’16 period.

Source: Ministry of Coal 
Quantity in MnT