India: Power Plants’ Coal Import Increase 8% Y-o-Y in Jul’18

Coal imports by Indian power plants have recorded a growth of 8% Y-o-Y to 4.4403 MnT in Jul’18, compared with 4.103 MnT in Jul’17. Notably, it was the first time that imports have increased on the year-on-year basis having previously declined in the first 3 months of FY19.

Monthly import in Jul’18 were however almost unchanged from the previous month when the plants had bought 4.4399 MnT coal in Jun’18.

During the first 4 months of FY19 (Apr’18-Jul’18), government’s directive to increase coal supplies to power plant has certainly weighted down on imports which have fell 9% Y-o-Y to 17.523 MnT, compared with the correspond period’s total of 19.29 MnT attained in FY18.

Combined coal stock at the power plants has improved 6% on the month to 21.13 MnT in at the end of Jul’18, but was still 4% lower on the year compared with 22.051 MnT in Jul’17.

The growth in coal stock was aided by the fall in coal consumption which had hit a 5-month low of 49.551 MnT in Jul’18.

One cause of concern for the power producers’ remains the lower receipt of coal from the E-auctions, where monthly coal allocation of 2.4176 MnT in Jul’18 was the lowest since Apr’17.

Power producers which have attain secured coal supply through FSA and linkages does not depend on the coal quantity allotted from E-auctions, but those who does not have secured linkages often go for imports to meet their demand. Nevertheless, with improved stock levels at the power stations CIL is expected to raise the E-auction volumes in the second half period of FY19.

Plant-wise Coal Import:
A plant-wise break-up of imports indicate that power plants running on domestic coal had witnessed 2% increase in monthly imports during Jul’18.

Utilities from GSECL, APPDCL and TANGEDCO have imported a total of 0.143 MnT coal from the state sector in Jul’18, which was 76% lower on the month from 0.603 MnT in Jun’18. But a surge in import from the private and central sector plants have covered up for the loss from state sector.

Private sector plants’ coal imports rose 46% M-o-M to 1.294 MnT in Jul’18 against 0.888 MnT in Jun’18.

Imports by central sector plants also increased from 0.003 MnT in Jun’18 to 0.093 MnT in Jul’18, as NTPC and NTPL (JV of TANGEDCO and NLC) both had received imported coal during the month.

Plants designed on imported coal had brought 2.91 MnT coal in Jul’18, recording a modest decrease of 1% from 2.945 MnT in Jun’18.

Private sector plant’s coal import of 2.858 MnT in Jul’18 remained almost stable on the month from 2.856 MnT in Jun’18. While imports from state run Sikka power plant fell 42% M-o-M to 0.052 MnT in Jul’18.

Source: Power Ministry
Quantity in MnT