SCCL’s coal production down by 13% m-o-m in Jul ’20

Singareni Collieries Company Ltd (SCCL), the coal miner operating in Telangana state, has registered a decline of 13% in its monthly coal production during Jul ’20.

Although SCCL’s production has been predominantly affected due to COVID-19, disruption owing to the 72-hours strike called by various trade unions last month also stalled the progress in mining activities.

The company had produced 2.85 mn t coal in Jul ’20 against 3.27 mn t in Jun ’20, thus halting the successive growth in production seen for the past two months. Besides, the output continued its downslide on the y-o-y basis, as it fell 45% from 5.15 mn t in Jul ’19.

In the first four months of FY ’21 (Apr-Jul ’20), total production has dropped 44% y-o-y to 12.36 mn t as against 22.23 mn t recorded in the corresponding period of previous fiscal.

Marginal rise in coal dispatch

While SCCL’s production dropped on the monthly basis, the company had managed to record an uptick in coal supplies during Jul ’20.

Coal dispatch recorded a subtle rise of 1% m-o-m to 2.91 mn t in Jul ’20 against 2.88 mn t in Jun ’20. Also, marking a recovery on y-o-y basis, dispatch volume decreased by a margin of 43% from 5.12 mn t in Jul ’19, which was the lowest fall recorded for a month since the beginning of FY ’21.

Source: SCCL | Quantity in mn t

Nevertheless, total dispatch in the four month period has plunged by 48% y-o-y to 11.38 mn t, majorly due to shutdown of several of coal consuming units and scaled down power generation in various coal-based power plants in South India.