Coal offtake at CIL up 33% in Q1

Even as coal demand from the power sector is vacillating, Coal India Ltd (CIL) witnessed almost 33 per cent growth in offtake at around 160.4 million tonnes (mt) during the first quarter of the current fiscal, compared to 120.8 mt in the same period last year.

It is to be noted that coal production and offtake was impacted by the Covid-19-induced lockdown and the subsequent slowdown in the economy which affected demand, particularly from the power sector. The increase in offtake during the first quarter of the current fiscal is five per cent higher compared to 153.5 mt during April-June 2019 (pre Covid) period.

“So far, in the current fiscal, coal-based power generation is yet to get into a steady rhythm having a bearing on our supplies to the power sector. After an encouraging spurt in April, coal fired electricity generation slowed down in May. It started accelerating during the last ten days of June again,” the company said in a press statement.

CIL supplied 126.3 mt of coal to power sector during Q1, a 34 per cent jump compared to 94 mt in the same period last year. The growth is almost six per cent higher compared to relative Covid-free first quarter of 2019.

Loading through rail mode logged 40 per cent growth during Q1 of FY21. CIL loaded an average of 296.7 rakes a day during the referred quarter against 211.6 rakes in the same quarter last year, including private washeries and goods sheds.

Coal production was up by a meagre two per cent at 124 mt during the first three months of the current fiscal compared to 121 mt in the same quarter last year. However, if demand improves then ramping up production would not be a problem for CIL with large volumes of overburden removed, it said.

While coal import by domestic coal based power plants was down 18 per cent during April-May’21, CEA data indicate generation by these plants grew by 42 per cent to 167.156 billion units (BU) during this period compared to 117.547 BU in the same period last year.

Coal imports fell by nearly 11 per cent in May’21 at 19.92 mt on a month-on-month comparison of 22.27 mt in April.

“If the non-substitutable quantity comprising coking coal, metallurgical coal, higher GCV coal, anthracite coal, pulverized coal for injection and pet coke which accounted for 6.3 MTs is taken out of the equation of the total imports, then the avenue for substitution with domestic non-coking coal exists for G11 to G15 grades,” the release said.

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