Power sector gives boost to coal off takes though CIL still saddled with huge pit headstocks

By: |
August 04, 2021 3:45 AM

The company achieved the highest ever coal off-take, production and overburden removal (OBR), for July of any year since the company’s inception 46 years ago, posting growths of 16.7%, 14.1% and 3.6% respectively.

Its e-auction allocation was 27.6 MT in the corresponding four months of the 2020-21 fiscal.Its e-auction allocation was 27.6 MT in the corresponding four months of the 2020-21 fiscal.

Even as the country’s appetite for coal is on the rise with offtake from the coal-fired plants rising sharply to 166.3 million tonnes during April- July this fiscal against 127.2 MTs during the same period last fiscal, Coal India (CIL) is still saddled with a buffer of 55.8 MTs stock despite its marketing efforts reduced pit headstocks by 43.4 MTs at the end of July this year.

The company achieved the highest ever coal off-take, production and overburden removal (OBR), for July of any year since the company’s inception 46 years ago, posting growths of 16.7%, 14.1% and 3.6% respectively.

In terms of supplies to the power generators, CIL’s coal supply accounted for about three-fourths of the country’s total coal-based power generation of 82.119 billion units during July including generation through imported coal. “If the generation through only domestic coal is considered, then CIL’s share would be even higher,” a CIL executive said adding the country’s power consumption is gradually inching towards pre-pandemic levels.

The company clocked a 30.7% growth in supplies to the power sector during the April-July period with a whopping 39 million tonne (MT) increase, over the same period year ago. Off-take from the power sector for July this year at 39 MTs, registered a 17% growth compared to 33.3 MTs during July last year.

CIL’s total coal off-take also increased by 46.7 MTs during the first four months of the fiscal in progress, registering a strong 28.4% growth. The total volume of coal supplied was 210.8 MTs during April-July this fiscal compared to 164 MTs of the corresponding year-ago period.

The PSU coal miner came back strongly with an output of 42.6 MTs in July this year compared to 37.3 MTs during July last year, a growth of 14.1%.

“The double-digit growth of July this year helped the company push up its progressive production growth to 5.2% which at the closure of first quarter was 2.4%,” the company executive said.

For April-July this year, CIL produced 166.6 MTs of coal compared to 158.4 MTs during the corresponding period a year ago. Overburden removal was also recorded at 91 million cubic metres (M.Cu.M) for July this year against 89 M.Cu.M of July last year.

However, with the company’s production on the rise and pit headstocks still at a buffer, the miner is ready to meet any exigency in coal demand.

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