Riding on the back of a revival in demand from the power sector, Coal India Ltd (CIL) witnessed a surge in coal off-take to 55 million tonnes (mt) for the month of May this year. Coal offtake same period last year was lower at around 40 mt due to Covid induced lockdown and economic slowdown.

However, the offtake in May 2021 is almost six per cent higher as compared to 52 mt recorded by the company in May 2019 during the pre Covid period.

With the appetite for coal signaling healthy recovery, CIL’s supply to power sector at nearly 44 mt in May 2021 was up by 41 per cent as compared to same period last year.

Also read: Core industries’ output falls 15.1% m-o-m in April

Stimulated by increased activity and higher coal consumption, stock at thermal power stations fell by 5 mt in the month of April 2021 from that of 28.9 mt at the end of last fiscal. However, increased supplies by CIL in May 2021 resulted in the coal stock restored to 29 mt at the coal fired plants. In the ensuing months the company would aim to further increase its supplies.

“Understandably, due to Covid forced lockdown, coal supplies suffered during last year but even then a robust overall 30 mt off-take upsurge during first two months of the current fiscal is an encouraging sign compared to April-May 2020. During this period coal off-take to power sector was 23.6 mt more,” a senior company official said in a press statement.

CIL’s total coal off-take for April-May 2021 was 109.2 mt, a growth of 38 per cent compared to 79 mt same period year ago. Similarly, supply to power sector, which is one of the largest coal consuming sector also registered 38 per cent growth. CIL supplied 86.3 mt of coal to power during the first two months of the ongoing fiscal compared to 62.7 mt same period last year.

Also read: ‘Recovery in energy demand despite Covid led temporary blip’

CIL has liquidated 25 mt of coal out of its inventory during Apri-May 2021. The company which began FY 2022 with close to 100 mt stock at its pitheads reduced it to 74.3 mt at the end of May 2021.

Coal production was marginally up by around two per cent at 42.1 mt in May’21, as against 41.4 mt same period last year. The production in April-May 2021 was up by around three per cent at 84 mt (81.8 mt).

The company hopes to ramp up the production even at short notice when the demand peaks to even higher levels especially with the coal seams exposed. It has recorded the second highest over burden removal growth of 17 per cent.

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