India’s total coal dispatches stood at 67 million tonnes (mnt) in October 2022, down 4.5% y-o-y compared to 70.2 mnt in October 2021, as per data maintained with CoalMint. Notably, dispatches have fallen for the first time since February 2021. However, on a m-o-m basis, the offtake has increased by 9.5%.
The seasonal growth in output following the end of monsoon season helped to sustain the monthly increase in offtake. However, lower coal inventory position at mines impacted the dispatch growth y-o-y, indicating that the rate of coal output needs to be increased. Apart from that, the decline in dispatches was also attributed to the high-volume base of last year when higher supplies were necessitated to avert the looming power crisis
Meanwhile, total dispatches till October FY2023 (Apr-Oct’22) rose by 8% y-o-y to 483.6 mnt.
Dispatches to power sector decrease
The fall in total coal dispatches has resulted in lower allocation to the power sector in October 2022 as power demand was anticipated to be low because of the favourable weather conditions. The quantity allocated to the power sector in October was 56.5 mnt, a 5.5% y-o-y decrease.
Meanwhile, the allocation to the non-power sector was steady y-o-y in October at 10.5 mnt. However, the allocation pattern underwent a change, as offtake to captive power producers decreased by 29% while this quantity was allocated to other sectors.
Notably, the non-power sector includes aluminium, cement, sponge iron, paper, ceramics, tea, textile, captive power producers (CPPs) and others.
Company-wise dispatches
Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) and captive/other miners have registered a negative growth.
CIL’s offtake in October decreased by 5% y-o-y to 53.7 mnt. Bharat Coking Coal Limited was the sole subsidiary of CIL to post an increase of 12.66% y-o-y in offtake while South Eastern Coalfields Limited’s dispatches remained unchanged. Dispatches from the remaining subsidiaries have fallen.
SCCL’s offtake was affected by rains in early parts of month resulting in a 5 % y-o-y drop in dispatches.
Meanwhile, the fall in output in case of captive and other miners was marginal.
The production and dispatches in October were discouraging as these were expected to grow at a higher rate in the second half of FY2023 as the monsoons ease. However, there is still hope as these may improve in upcoming months.
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