Team News Riveting
Kolkata, October 4
Amid soaring coal demand and depleting stocks at coal fired power plants Coal India Limited (CIL), supplied 117.6 million tonnes (MTs) to power utilities during July-September’21 quarter, the highest for Q2 of any year, posting 12.3 per cent growth.
This is a volume jump of 13 MTs compared to 104.7 MTs of same quarter last year. The growth is even higher at 17.2 per cent when matched against 100.3 MTs of COVID free second quarter of FY’20.
CIL’s total off-take shot up to 147.3 MTs at the quarter ending September’21 which is 9.7 per cent more against comparable quarter of last year when the off-take was 134.3 MTs.
“The company is responsive to the importance of improving coal stocks at thermal power stations. We are rallying our efforts to restore normalcy as early as possible by pushing additional quantities. The demand is far outstripping the supplies now.” said S N Tiwary, Director Marketing of CIL.
In fact, during the first half of this financial year CIL’s off-take to power sector at nearly 246 MTs was highest ever for this period so far but the demand from this sector was even higher as an outcome of a sudden spike in coal based generation to unprecedented levels.
There was an additional supply burden of around 10 MTs to 12 MTs on CIL to cater to domestic coal based TPPs due to curtailment of power generation by plants which source their coal from overseas, where the prices have skyrocketed and holding firm.
Generally, CIL builds up coal inventories at power utilities during the first quarter but covid’s posed an hindrance to this, and extra stocking was not possible. Compounding to the woes, extended monsoon at coalfield areas interrupted production and supplies. Primarily, what precipitated the situation was the unforeseen escalation in the power generation from the second week of August and the insatiable appetite for coal.
“Reasons aside, the company is fully seized of the imperative need to meet the power sector’s demand. With the monsoon on the wane, increased production and availability of more coal is will help us stabilize stocks at power plants” said a senior executive of the company.
Despite heavy rainfall, CIL produced close to 126 MTs of coal during current fiscal’s Q2, another record high for the second quarter, posting 9.6 per cent year-on-year growth. Last fiscal’s second quarter output was 115 MTs.
CIL managed to liquidate a whopping 57 MTs of its pithead stock during the first six months of the current fiscal with bulk of it directed to power utilities. This is the highest ever stock reduction not only for any H1 but on yearly basis as well so far.
