Coal India's supplies to non-power sectors down 3% in Apr-Jan
Premium- As the power sector regulated coal intake for major part of FY21, Coal India had scaled up its supplies to the non-power sectors in that year
New Delhi: Coal India Ltd despatched 101.7 million tonne of coal to non-power sectors during April-January of FY22, down 3.1% on a year-on-year basis.
The state-run company had despatched 105 million tonne during the same period of FY21.
In a statement, the company outlined several reasons for higher despatch in FY21.
As the power sector regulated coal intake for major part of FY21, impacting the demand for coal, the mining major scaled up its supplies to the non-power sectors. Further, non-power sector customers also opted to lift higher volumes of coal as Coal India's e-auction sales were capped at notified price for the first half of FY21.
The statement said that the company is currently supplying around 3.4 lakh tonnes of coal per day to non-power sector which is the company’s average supply to this segment.
"With more than 37 million tonne (MTs) of coal at its pitheads CIL aims to further step up supplies to this sector, " it said.
Non-power sectors import around 170 million tonne of coal in any given fiscal for blending with domestic coal. But in FY22, rising international coal prices proved to be a hindrance for importing requisite quantity giving rise to scarcity of coal at their end.
“CIL has sufficient buffer stock to increase supply to non-power sector. Coal availability is not a problem," said a senior executive of the company.
MINT PREMIUM See All
FY22 has witnessed an unprecedented surge in power generation, the growth rate being the highest in a decade, necessitating the need to meet the power sector’s coal demand on a national priority.
Riding on robust economic recovery total coal-based power generation till January FY22 of the fiscal in progress grew by 11.2% on a year-on-year comparison. As domestic coal-based generation was up by 17% during this period, bulk of the coal supply to power sector was met by Coal India on priority, it said.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!