Coal India Ltd (CIL) had reported 5% growth in coal production during Nov’18 to attain fresh high for the FY19. Monthly output in Nov’18 was 52.09 MnT against 49.77 MnT in Oct’18.
Surging demand and lower coal stock available at the power stations continuously drive-up CIL’s output, which has now recorded growth for the 16th consecutive month on the year-on-year basis. However, the 2% increase in Nov’18 noted against Nov’17 output of 51.29 MnT was the least rate recorded for the FY19.
ln order to address the coal shortage in the country, CIL has posted significant growth in production during the first 8 months of FY19. The company’s output in Apr’18-Nov’18 period has reached 358.33 MnT, up 8.8% from 329.29 MnT recorded in the same period of FY18.
After reporting a 5-year low coal stock at its mines, the coal company would be envisaged to build-up coal reserves at its mines. Notably, CIL’s coal production in Nov’18 was 2% more than the corresponding off-take of 51.01 MnT, which had occurred for the first time in FY19.
CIL’s coal offtake had made slow progress during Nov’18, as it was 2% higher on the month from 50 MnT in Oct’18. While on the yearly basis, it was only 1% higher from 50.67 MnT in Nov’17.
The sluggish development in terms of coal dispatch can be attributed to the number of pending rakes entitled for non-power sector, which have been delayed in order to augment the supplies for the power sector. However, the underlying problem is expected to ease with a rise in coal production and drop in power demand during the winter period.
CIL’s total coal dispatch in the 8-month period was recorded at 391.82 MnT, up 6.5% Y-o-Y from 367.99 MnT in same period last year.
Performance of CIL’s subsidiaries in Nov’18:
SECL was the top coal producing subsidiary in Nov’18 with total output of 13.2 MnT. MCL followed up with 12.37 MnT, which was its highest monthly output in Nov’18.
Out of the 8-coal producing units of CIL, only BCCL and NCL had seen a fall in output on the monthly basis.
SECL also came out on the top for monthly coal dispatches in Nov’18, followed by MCL. But, coal supply from the latter was down 1% M-o-M to 11.73 MnT in Nov’18.
Source: CIL| Quantity in MnT
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