Coal India prioritises supply to power plants with stocks of up to six days

By: |
September 03, 2021 3:00 AM

“With plans to ramp up production, strengthening evacuation infrastructure and adequate coal stock at our pitheads we are prepared to meet any surge in coal demand from the power sector,” a senior CIL executive said.

The development assumes significance in the wake of power plants across the country facing coal shortages.The development assumes significance in the wake of power plants across the country facing coal shortages.

Coal India (CIL) has prioritised supply to power plants that have stocks to last zero to six days, offering coal on ‘as is where’ basis through rail-cum-road mode from sources where high stock is available. The company has identified 23 such mines carrying 40.3 million tonne (MT) of stock as of August 16.

The company is building up stocks at power plants by making available alternative sources for supply in case of shortage at the mines linked to the plants. The PSU miner saw 104% materialisation during the last week of August at an average per day supply of 1.36 MT, as against the requirement of 1.31 MT set by CEA. The last three days’ average loading to the power sector went up to 1.4 MT.

“With plans to ramp up production, strengthening evacuation infrastructure and adequate coal stock at our pitheads we are prepared to meet any surge in coal demand from the power sector,” a senior CIL executive said.

Though the power sector is grappling with depleting stocks on its end, the company has supplied 44 MT more coal to the sector during April-August this year than it did during the same period a year ago. It dispatched close to 206 MT of dry fuel to coal-fired power plants during the first five months of FY22, posting 27% growth over 162 MT supplied in the same period of the previous fiscal.

Even compared to the pre-pandemic April-August 2019, when dispatches to the power sector were 190.7 MT, CIL logged 8% growth.

CIL’s total offtake jumped up to 259.3 MT during April-August 2021 from 208.5 MT during the same period last year, clocking a 24.4% growth. The offtake held steady at 1.7 MT per day in the last week of August. “Never in August of any previous year did the company’s dispatches exceed 1.6 MT a day. With the monsoon receding, CIL is aiming to elevate dispatches to 1.8 MT a day and beyond in September,” the executive said.

CIL produced 209.2 MT of coal progressive till August, logging 7% year-on-year growth. During the last week of August, CIL ramped up its output at an average of 1.45 MT a day. The average August production has never been higher than 1.25 MT per day during the last four years.

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