Domestic Coal Rakes Transported by Indian Railways Rise 14% Q-o-Q in Q4 CY19

Rakes supplied by Indian railways for domestic coal movement have elevated during the fourth quarter of CY19, driven by improved coal availability.

Data compiled by CoalMint research shows that domestic coal rakes delivered during Q4 CY19 (Oct-Dec’19) were marked 14% higher on the quarter at 33,622 compared with 29,433 noted in Q3 CY19. In addition, the count of rakes also extended its growth on the monthly basis, as it attained a 7-month high total of 12,068 during Dec’19.

A drastic fall in coal deliveries was witnessed in the third quarter of CY19, hampered by a weaker seasonal demand while the situation was also aggravated by subdued domestic coal production.

However, recovering from the torrential rainfall across its subsidiaries, CIL has now managed to step up supplies by improving its coal production in the recent months, which was part reflected in the increased coal movement via railways during Q4 CY19 as well.

Sector-wise Rake Movement:

Of late, the power sector has witnessed a weaker seasonal demand of coal amid monsoons. Besides, the urgency for coal supplies was also lowered by a better coal stock position in hand compared with the previous year.

Meanwhile, in order to rebuild stock level for the forthcoming summer season, rake supplied to power sector were increased 17% Q-o-Q to 25,332 in Q4 CY19, averaging 275.35 rakes/day in the period.

Rake deliveries for non-power sector were also augmented with the gradual improvement in domestic coal availability. The non-power sector had procured 8,290 coal rakes in total during Q4 CY19 at an average of 90.11 rakes/day, which was assessed 7% higher Q-o-Q from 84.04 rakes/day noted in Q3 CY19.

Major Coal Receivers:

India’s largest power producer NTPC had taken the highest number of coal rakes for its plants’ operation during Q4 CY19. Rakes procured by the power utility stood 5,181 during the quarter, which was 31% higher Q-o-Q from 3,959 noted in Q3 CY19.

Maharashtra State Power Generation Company was the second-largest coal receiver, with intake of 2,187 rakes in Q3 CY19.

Barring the hefty rise seen in coal movement across power utilities, major coal receivers in non-power sector had recorded a decline in coal receipt during the quarter period.

Source: CoalMint Research
Quantity in terms of number of rakes supplied

SAIL had taken the most number of coal rakes among non-power sector, but the count was down 2% Q-o-Q to 1,220 in Q4 CY19. While, rakes acquired by second largest receiver pertaining to non-power sector-JSW Steel, had also decreased 8% Q-o-Q to 886 in the fourth quarter.

Over the course of CY19, the railways have transported 137,789 coal rakes in total, at an average of 377.5 rakes/day. Indian power sector had acquired nearly three-fourth of the total rakes in the period.