Coal India’s (CIL) monthly coal dispatch to power plants has slightly went up during Dec ’20 eventually crossing the 40 mn t mark for the first time in the current fiscal.
Coal dispatch saw an increase in absolute terms by 2% m-o-m to 40.25 mn t in Dec ’20 against 39.38 mn t in Nov ’20. However, average dispatch receded to 1.298 mn t/day in Dec ’20 compared with 1.31 mn t/day in the previous month.
Despite extending its rise on the monthly basis, coal supplies tumbled on the y-o-y basis by registering decline after 4 months, as it fell 7% from 43.04 mn t in Dec ’19.
Weakened power demand on arrival of winter season has plugged appetite for coal as several power plants were seen regulating coal supplies at a time when inventories remain elevated. As on 13 Jan ’21, coal stock at power plants was assessed at 36.4 mn t, sufficient for 20 days of power generation.
On the other hand, non-power consumers continued to show greater tendency to lift more coal, with dispatch to this sector rising 7% on the year to 12.31 mn t in Dec ’20, which is also the highest monthly total recorded in FY ’21.
Notably, progressive up to Dec ’20, coal supplied to power sector has fallen 5% y-o-y to 318.04 mn t, while in case of non-power sector; growth in supplies has been 12% at 91.66 mn t.
Of late, shortfall in coal demand from power sector has been partly met by non-power sector, but given the major market share which the former holds it is not feasible for CIL to meet its commitments while relying on the latter. Nevertheless, the company is expected to follow the same route until there is resurgence in electricity requirement.
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