Coal India Ltd (CIL) continued the steady rise in coal dispatch to the power plants but the growth was contracted by a fall in demand on the arrival of winter season.
Data provided by coal ministry showed that dispatch to power sector increased 2% m-o-m to 39.38 mn t in Nov ’20 against 38.5 mn t in Oct ’20. Besides, progress made on the y-o-y was limited to mere 1% compared with 38.8 mn t in Nov ’19.
With power plants riding high on elevated pithead stock, many of them had considerably reduced coal supplies against the entitled quantity in the month where coal-fired power generation had dropped 8% m-o-m to 76.41 BU in Nov ’20.
In the first 8 months of FY ’21 (Apr-Nov ’20), total dispatch to power plants have decreased 5% y-o-y to 277.46 mn t due to tepid demand resulted from COVID-19. Nevertheless, as a consequence of the progressive growth in dispatch lately, coal stock at power plants has recorded an uptick at the end of Nov ’20 assessed at 37.4 mn t, thereby ending the continuous decline noted in the previous months.
Dispatch to non-power sector:
Of late, higher coal dispatch from non-power sector has helped CIL to overcome the drop in demand seen from the power sector. However, the trend was halted by a slight fall recorded during the month.
Dispatch to non-power sector was down 1% m-o-m to 11.94 mn t in Nov ’20 compared with 12.03 mn t in Oct ’20. Also, rise on the y-o-y basis had fallen to a 4-month low of 39% compared with 8.57 mn t in Nov ’19.
Non-power sector consisting of cement, sponge iron, and a host of other industries, are a part of CIL’s plan to expand its sales volume by promoting import substitution of coal, under which new auction scheme has also been introduced. The company is expected to keep the same strategy till demand from power sector is fully recovered.
Progressive up to Nov ’20, coal supplies to non-power sector has increased 12% y-o-y to 79.7 mn t compared with 70.98 mn t recorded in the year-ago period.
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