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Coal India’s fuel supply to power sector drops about 20% in Apr-Jul

PTI New Delhi | Updated on August 28, 2020

At a Coal India mine   -  THE HINDU

“Demand for domestic coal is likely to be subdued in the second quarter of the current financial year due to lower demand from end-user industries”

State-owned Coal India’s fuel supply to the power sector registered a decline of 19.5 per cent to 126.30 million tonnes (mt) in the April-July period of the ongoing fiscal in the wake of slump in coal demand.

Coal India had despatched 156.86 mt of fuel in April-July last year, according to the latest data of the coal ministry.

The despatch of coal in July fell 12.4 per cent to 32.76 mt (37.41 mt), it said.

The coal despatch by Singareni Collieries Company Ltd (SCCL) almost dropped by 47.2 per cent to 9.68 mt (18.32 mt). Its supply last month dropped to 2.40 mt (4.33 mt).

Coal India accounts for over 80 per cent of domestic coal output.

Demand for domestic coal is likely to be subdued in the second quarter of the current financial year due to lower demand from end-user industries amid the Covid-19 pandemic along with high inventory at power stations, India Ratings had said in a report.

Also read: Energy demand dip points to economic pain

The rating agency had said domestic coal production remained subdued for the third consecutive month in June 2020 year-on-year as well as month-on-month due to low power demand and higher inventory at power stations.

Also read: Coal prices to remain subdued this fiscal amid weak demand, high inventory

Thus, coal offtake reduced in June 2020 year-on-year but improved month-on-month with the gradual relaxation in lockdown norms, it had said.

Published on August 28, 2020

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