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The outstanding dues of state-run Coal India (CIL) from the Power sector declined by 5 per cent on a month-on-month (m-o-m) basis to ₹13,722.31 in October this year from ₹14,461.31 crore at the end of September.
This is the third consecutive month of decline in the outstanding dues of the Power sector to the coal mining behemoth. CIL’s average cost of production is around ₹1,310.88 per tonne.
At the end of January 2022, the dues stood at ₹15,097.01 crore, which fell consecutively during February to ₹15,037.32 crore and then to ₹12,272.41 crore in March this year.
With the peak electricity demand season beginning in April, which this year was also marked by an unusually high uptick in temperatures, the power sector dues started inching up at ₹12,819.09 crore during the month.
The dues started inching up during May (₹13,825.20 crore), June (₹15,252.20 crore) and hit the highest so far in the current calendar year in July at ₹15,824.14 crore. The outstanding to CIL started to decline from August (₹15,143.31 crore) and continued their northward journey during the next two consecutive months.
Production and despatch
The Maharatna company’s coal production rose by 6.3 per cent y-o-y in October 2022 to 52.94 million tonnes (MT). During the first seven months of the current financial year, CIL’s production of the key commodity grew 117.5 per cent on an annual basis to 351.93 MT.
The overall offtake of coal in October by the PSU major stood at 53.71 MT, a decline of almost 5 per cent y-o-y. However, during April-October of FY23, the offtake rose by around 6 per cent y-o-y to 385.70 MT.
The despatch of coal to the power sector by CIL fell 4 per cent y-o-y to 45.68 MT in October 2022. For the first seven months of FY23, the despatch was up 13.1 per cent on an annual basis to 330.66 MT.
The despatch and off take of the key commodity, a mainstay of India’s power generation sector, declined in October on account of lesser demand for power due to onset of winters.
Energy consumption during October 2022 stood at 115 billion units (BU), which rose marginally by one per cent on a year-on-year (y-o-y) basis, but fell by 10 per cent on a month-on-month (m-o-m) basis.
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