India: Power Plant Coal Imports Increase 26% Y-o-Y in Aug’18

Coal imports by Indian power plants have recorded a growth of 26% on the year to 4.95 MnT in Aug’18, compared with 3.917 MnT in Aug’17. Imports continued its rise on the Y-o-Y basis for the second month in a row, having previously declined in the first 3 months of FY19.

Data provided by Power ministry indicates that the imports by the power plants had rose to a 9-month high in Aug’18, however, total coal quantity received during the first 5 months of FY19 (Apr’18-Aug’18) was down 4% Y-o-Y to 22.473 MnT compared with 23.207 MnT in same period last year.

State run utility-TANGEDCO had not received any coal imports during the month, however, citing a decline in coal stock at the plants; media reports had claimed that the utility would soon be resuming imports again.

Recent imported coal purchase tenders floated by NTPC and MAHAGENCO adhere to the fact that power demand in the country is rising, and the imports are required to cater the growing appetite.

However, there remain certain factors that are likely to put a lid on the imports this term, which had seen drastic surge in the previous year.

Firstly, the remarkable growth in hydro power output which had impeded the power demand from thermal plants to an extent in Aug’18.

Coal consumption at the plants was recorded at 50.597 MnT in Aug’18, up 2% M-o-M from 49.555 MnT in Jul’18. The consumption was certainly lessened by the rise in hydro power output, which in turn had helped the coal stock to grow during the month.

Although combined coal stock recorded at the power plants have dropped 8% M-o-M to 19.472 MnT in Aug’18, but was much improved from the levels of 16.169 MnT recorded a year ago.

Moreover, with an improved stock available at the power plants, CIL will be compelled to raise the quantity in e-auction hereon especially when the monsoon period in the country has passed.

Consequently, a pick-up in domestic coal supplies should lower the rate of coal imports from both power and non-power sector.

Plant-wise Coal Import:
A plant wise break up of imports indicates that the coal received by plant running on domestic coal had witnessed 8% fall on the month. While it was the plants deigned on imported coal, which had pushed the monthly imports higher in Aug’18.

Imports by plants based on imported coal had increased 22% M-o-M in Aug’18.

Among the plants designed on domestic coal, coal receipt by Central power plants attained its highest total over a year, marked at 0.1035 MnT in Aug’18. Imports from state utilities had also made progress in the fact that there was no import recorded in Aug’17.

Private plants’ import in Aug’18 had increased on Y-o-Y from Aug’17, but was down 20% on the month from 1.2937 MnT in Jul’18.

Among the plants designed on imported coal, both state and private sector plants had recorded growth in imports on monthly and yearly basis.