Coal India Ltd, the largest coal producer in the country, has reported a fall of 7% in coal volumes dispatched to power sector during the first 6 months of FY20.
Data provided by Coal ministry indicate that CIL’s coal dispatch to power sector was marked 218.4 MnT in Apr-Sep’19, down 7% Y-o-Y from 235 MnT noted in Apr-Sep’18 period.
Apparently, coal supplies of 28.3 MnT noted in the month of Sep’19 had witness a y-o-y fall for the fifth consecutive month, also attaining its lowest total since Aug’16.
A subdued coal production has unvaryingly affected CIL’s coal supplies in the FY20.
Since the beginning of the fiscal, CIL’s largest coal producing unit SECL had been facing delay in contracts related to overburden removal. Besides, agitation related to villagers protest and land slide accident in MCL had further hampered production from the coal major.
Most recently, protracted rains have further aggravated the production schedule at CIL, where total output has fallen 6% on the year in the first half of FY20.
Fuel Supply remains a concern amid robust capacity addition:
The shrinking dispatches have been reducing coal inventories at thermal power plants, which have nearly fallen 45% since the beginning of FY20.
Data provided by CEA shows that coal stocks were accessed at 17.078 MnT as on 13 Oct’19, sufficient for 10 days of power generation.
Although, the situation is not yet alarming, as the current stock level are comparatively better than the equivalent volume of 9 MnT seen in Oct’18. However, the robust capacity of thermal plant units added in the 6-month period would mean more mouths to feed at a time when CIL’s supply has been lagging.
It is pertaining to note that coal fired units of 3,345 MW have been installed in H1 FY20, with 1,320 MW coming online in the month of Sep’19. Apparently, no new capacity were added in the year -ago period during FY19.
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