CIL taking steps to increase coal supply to non-power sector

Growth in supplies to NPS customers was at a higher rate than the supplies to the power sector during this period.

New Delhi: Coal India Limited (CIL) has sufficient buffer stock and is making efforts to increase coal supply to the non-power sector in view of the increased demand, the Ministry of Coal said on Saturday.
The current supply by Coal India Limited stands at around 3.4 lakh tonnes of coal per day to the non-power sector.

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“With more than 37 million tonnes (MTs) of coal at its pitheads CIL aims to further step up supplies to this sector,” the ministry said in a statement.

Coal India Limited’s despatch to the non-power sector (NPS) during the April-January period of 2021-22 at 101.7 million tonnes (MTs) was up by 8.2 per cent compared to 94 MTs in the corresponding period of a standard pandemic free FY 2019-20.

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For comparable period of even FY 2018-19, when CIL recorded the highest ever total coal despatch since its inception, supply to the NPS sector grew by 11 per cent over 91.5 MTs, it said.

Growth in supplies to NPS customers was at a higher rate than the supplies to the power sector during this period. In April 2020 to January 2021 period despatch to the NPS segment at 105 MTs was higher by a little over 3 MTs compared to same period of FY’22.

As coal intake for the major part of FY’21, witnessed demand disruption caused by COVID-19, CIL scaled up supplies to the NPS segment. Further, NPS customers also opted to lift higher volumes of coal as CIL’s e-auction sales were capped at notified price for the first half of FY 2021.

The NPS imports around 170 MTs of coal in any given fiscal for blending with domestic coal. But in FY’22 the unusually high 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 further increase supply to non-power sector,” the Ministry of Coal said.

The current financial year 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’22 of the fiscal in progress grew by 11.2 per cent on year-on-year. Whereas domestic coal-based generation was up by 17 per cent during this period. Bulk of the coal supply to power sector was met by CIL on priority.

In sharp contrast power generation by 14 imported coal-based power plants was down by 48 per cent during April-January 2021-22. Meeting the resultant generation gap fell on domestic coal-based generators requiring enhanced indigenous coal supply. CIL supplied to the tune of around 20 MTs of this additional demand. In other words, imports were curtailed to that extent.

Despite prioritisation of coal to power sector and facing other challenges, CIL at 101.7 MTs till January FY’22 supplied 97 per cent of same period last year’s quantity to NPS customers, the Ministry of Coal said.

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