Domestic Coal Rakes Transported by Railways Down 2% M-o-M in Mar’20

Coal movement via railways were affected by the sluggish power demand resulting from the lock-down, as it fell to a 5-month low during Mar’20.

Data compiled by CoalMint research shows that domestic coal rakes delivered in Mar’20 were marked 2% lower on the month at 11,389 compared with 11,659 noted in Feb’20. Average loading on daily basis was down 9% M-o-M to 367.39 rakes/day during Mar’20.

Coal supplies had seen a partial recovery post monsoon, but any sign of further correction was constrained by the nation-wide lock-down imposed towards the end of Mar’20.

Incidentally, all India power consumption had come down 20% W-o-W to 19761.9 Million Units (MU) during 22-28 Mar’2020 with the immediate announcement of lock-down, thus limiting the immediate coal requirement from the power stations which had already stocked enough coal.

Sector-wise Rake Allocation:

Coal rakes delivered to the power sector witnessed a marginal increase in absolute terms as it grew to 8,478 in Mar’20 as against 8,442 in Feb’20. Although, average loading on daily basis decreased 6% on the month to 273.48 rakes/day.

A detailed break-up of allocation indicate that central and state run power plants had taken more rakes compared with the previous month, but no such urgency was seen from the private sector power plants.

Apparently, coal rakes allocation to the power sector was down 11% M-o-M to 2,019 in Mar’20.

Dispatch to Non-Power Sector:

Lower coal requirement on account of subdued power demand could have been beneficial in augmenting the coal supplies of non-power sector, who have always been preferred second to the thermal utilities.

Of late, arrears/allotments to the non-regulated sector were liquidated to tide over the present situation of poor demand from power stations.

However, immediate closure of industrial activities on the wake of lock-down halted growth in non-power sector’s rake allotment as well, which came down 10% on the month to 2,911 in Mar’20.

Quantity in number of rakes supplied

Although, CIL has taken adequate measures to relief financial hardship of its coal consumers. Nevertheless, it is expected that the normal operations would only resume with the uplift of restrictions.