Team News Riveting
Kolkata, March 2
Coal India Limited (CIL)’s drive for import substitution backed by a set of multiple measures facilitated coal consumers to opt for around 71 Million Tonnes (MTs) of indigenous coal ending February of the current FY.
Predominant among them was a robust 43.5 MTs increase in e-auction bookings during April-February’ 21 compared to last year’s same period.
The slew of measures undertaken by CIL include allowing its coal companies to sign MoUs under import substitution with 17 power plants linked with them. Additional coal was offered to non-regulated sector (NRS) against fuel supply agreements up to 100 per cent of annual contracted quantity (ACQ). Trigger level for the power sector was increased from 75 per cent to 80 per cent. ACQ for power plants was enhanced to 100 per cent of normative requirement from 90 per cent. Additional coal was allocated to state and central generating companies under flexi utilization policy enabling them reduction in coal imports.
CIL also waived off performance incentive to the consumers of the power sector, for supply of coal beyond the trigger level since the beginning of the fiscal. This helped the consumers opting additional quantities of coal at lower cost from CIL.
Coal companies of CIL have been proactively conducting frequent interactions with the consumers sensitizing them to opt for the indigenous coal instead of coal sourced from abroad.
“These coordinated efforts of CIL, apart from 43.5 MTs of increased bookings in e-auction, helped arrest the imports by further 28 MTs” said a senior executive of the company. Had CIL not launched such measures the choice for consumers would have been to reach out for imported coal. Small consumers and traders who do not have long term contracts with CIL opt for e-auction sales with the other alternative being import.
Power Sector consumers, among the many, who were provided coal under these measures were CESC Limited, Andhra Pradesh Power Development Corporation Limited, Adani Power Limited and GMR group. NRS consumers include Vedanta Limited, Jindal Steel & Power Limited, NALCO, Hindalco Industries Limited and Tata Steel BSL Limited.
Bookings under special forward auction, meant exclusively for power sector consumers, at 33 MTs during April-February’21 logged 27 per cent growth over last year’s same period. The increase in real terms was 7 MTs against 26 MTs of last year.
Imports by domestic coal based power plants at 9 MTs declined by 55 per cent till January 21 compared to 20 MTs of the same period last FY.
