CIL Coal Supply to Power Plant Increases 15% Y-o-Y in May’18

According to the latest monthly report provided by the Coal Ministry, CIL’s coal supply to the power sector has increased 15% Y-o-Y to 41.7 MnT in May’18, compared with 36.2 MnT in May’17.

CIL has dispatched 81.7 MnT coal to the power sector during the first two months of FY19 (Apr’18-May’18), which was 14% more than the coal dispatched during in the corresponding period of FY18.

Coal consumption at the power plants had increased 6% M-o-M to 56.381 MnT, which had resulted in coal stocks at the power stations(including those which do not have a coal linkage) falling to a 5-month low of 19.084 MnT in May’18.

In order to meet the coal requirement of the power plants, CIL had raised its coal supply to the power sector.

State run-SCCL had also seen its coal dispatch rising during the month on the year-on-year basis. During May’18, the coal company had dispatched 4.8 MnT coal against 4.3 MnT in May’17. Dispatch during Apr’18-May’18 period had increased 8% Y-o-Y to 9.6 MnT.

Source: Coal Ministry
Quantity in MnT

CIL determined not to repeat previous year’s ‘mistake’:

Media reports have claimed that CIL has urged power plants not to restrict coal intake during the monsoon period when demand for power drops, but to use this period as an opportunity to build stock to cope with the subsequent increase in power demand.

Data from the power ministry indicates that thermal power generation is generally lower in Jun-Jun period during the rainy season, but picks up demand in the month of August.

The same situation had led to a domestic coal crush in the previous fiscal FY18, when the power sector had initially stalled coal intake from CIL in monsoon. However, the sudden surge in thermal power demand amidst lower hydro generation in Aug’17 had resulted in coal stock declining in the subsequent months.

Coal stock at the power plants during Aug’17 was recorded at 16.169 MnT, which as a consequence of higher coal burning had fell to 13.01 MnT in Sep’17 and 12.224 MnT in Oct’17.

The situation could get worse this year, as the closing coal stock at the power plants was recorded 12% lower on the year at 19.084 MnT in May’18 against 21.806 MnT in May’17. The power ministry has not provided coal stock figures for Jun’18.