Coal India’s Mines Stock Increases by 7.8% Y-o-Y

Indian coal miner, CIL’s coal stock has expanded to 57.6 MnT on 1 Apr’16. The quantity grew by 4.2 MnT against FY15 as power producers regulated to lift increased quantity. 

 Coal India has informed in Rajya Sabha that closing coal stock as on 31 Mar’16 was 57.6 MnT. In FY15, coal stock of CIL as on 1 Apr’15 was 53.469 MnT, which has increased by about 7.8% to 57.6 MnT on 1 Apr’16.

The major reason for enhanced stockpiles:

1. The expansion in coal stock is primarily by virtue of regulated lifting by power producers.
2. Coal offerings to power utilities, independent power producers (IPPs) through special e-auction at low cost in reverse auction.
3. Another important reason is ‘as is where is’ scheme for power producers. In this scheme, consumer will be allowed to arrange their own logistics and extra coal will be provided to consumers to curb import.
4. Enhanced production by CIL

It is to be noted that Coal India delivered a record quantity in FY16. With the conclusion of financial year, production figure is out, depicting that the giant registered a growth of 8.5% in FY16. CIL had produced 494 MnT of coal in FY15, which grew by 42 MnT in the last fiscal.