The coronavirus pandemic and its offshoot lockdown conditions have made Singareni Collieries Company Ltd (SCCL) register a decline in its annual production of coal in the recently ended 2019-20 fiscal, for the first time since 2013-14, and carried it into the new fiscal with the April production going down by about 45.5%, compared to April last year.
Despatches of coal too recorded decrease in 2019-20 for the first time since formation of Telangana and in the first month of 2020-21 they were down by over 45%. “The main reason for decrease in despatches has been the nose-diving demand for energy consumption with all industrial activity, except the ones engaged in the production of essential products/goods, coming to a literal halt from March 22,” a senior official of the coal company said when contacted.
As the lockdown continued through the month of April, the demand for coal has come to a naught in the industries such as cement, which consume coal in production, and the demand from power generation units remaining low. According to Singareni officials, the coal production in April was 3 million tonnes against the target of 5.52 million tonnes. In April last year, it was 5.5 million tonnes. Similarly, coal despatches too were in the same measure at 3.04 million tonnes against the target of 5.1 million tonnes. Despatches in April last year were 5.57 million tonnes. In percentage terms, production of coal in April was only 54% of the target and despatches at 60% of the target.
“With the industrial (economic) activity restarting slowly, we hope the numbers are expected to catch up at least from June, when the energy demand from agriculture and allied sectors too would start picking up,” the senior executive said expressing hope.