CIL sees demand revival with increasing offtake

By: |
June 03, 2021 12:15 AM

This is a clear signal of demand growth as never before in the month of May CIL could push this much volume. The highest volume that the company pushed so far during May was 52.8 MT in FY19, when CIL witnessed the highest ever offtake of 608 MT for the entire fiscal.

CIL, coal indiaThe clause, made effective from June 8, will allow coal purchasers including traders to export coal procured under two categories of e-auction schemes — spot e-auction scheme and special spot e auction scheme.

Public sector miner Coal India (CIL) sees demand revival with coal offtake touching 55 million tonne during May, a 38% growth compared to the same month last fiscal.

This is a clear signal of demand growth as never before in the month of May CIL could push this much volume. The highest volume that the company pushed so far during May was 52.8 MT in FY19, when CIL witnessed the highest ever offtake of 608 MT for the entire fiscal.

The offtake has been spurred by the growth in demand from the power sector, 41% up at 44 MT during May this fiscal, compared to the same month a year before.
The highest ever dispatches for the month of May could be achieved despite a formidable workforce getting Covid affected coupled with constrains in road transportation.

Average stock at the thermal power stations of the country fell by 5MT in April from that of 28.9 MT at the closure of FY21. But coal supplies in May once again restored the stock to 29 MT at the coal fired plants and this can even reach higher in the ensuing months.

“Understandably due to Covid forced lockdown coal supplies suffered during last year but even then a robust overall 30 MT offtake upsurge during first two months of the current fiscal is an encouraging sign compared to April-May ’20. During this period coal offtake to power sector was 23.6 MT more,” a senior company executive said.

CIL’s total coal offtake for April-May during current fiscal was 109.2 MT, a growth of 38% compared to 79 MT, the same period a year ago. Similarly supplies to the power sector also registered 38% growth. CIL supplied 86.3 MTs of coal to the power sector during the first two months of the ongoing fiscal compared to 62.7 MT same period a year ago.

CIL’s pit head stocks at the end of May has come down to 74.3 MT from close to 100 MT at the closure of FY21 because the company has liquidated 25 MT out of its inventory during Apri-May this fiscal.

CIL produced 84 MT in April – May of which 42.1 MT was produced in May. The miner is confident of ramping up the production even at short notice when the demand peaks to even higher levels especially with the coal seams exposed.

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