CIL supplies about 3.4 lakh tonne of coal to non-power sector

Coal India Limited (CIL) is presently providing about 3.4 lakh tonne of coal per day to the non-power sector (NPS), which is the firm's average supply to this segment. With over 37 million tonne (mt) of coal at its pitheads, CIL strives to step up supplies to this sector. CIL’s despatch to NPS during April-January FY22, at 101.7 mt, was increased by 8.2% as against 94 mt in the corresponding period of a standard pandemic free FY20. For a comparable period of even FY19, when CIL registered the highest ever total coal despatch since its inception, supply to the NPS sector increased by 11% to over 91.5 mt. The increase in supplies to NPS customers was at a higher rate than the supplies to the power sector during this period. In April 2020-January 2021 despatches to the NPS segment at 105 mt was increased by a little more than 3 mt as against the same period of FY22. The causes for increased despatch during the Covid ravaged year were several. As coal intake for a significant part of FY21, witnessed demand disruption caused by Covid, CIL increased supplies to the NPS segment. Additionally, NPS customers also opted to lift higher volumes of coal as CIL‘s e-auction sales were capped at a notified cost for the first half of FY21. The NPS imports about 170 mt of coal in any given fiscal year for blending with domestic coal. But in FY22, the unusually high international coal costs proved to be a limitation for importing requisite quantities giving rise to a scarcity of coal at their end. CIL has adequate buffer stock to additionally boost supply to the non-power sector. FY22 has noticed an unusual increase in power generation, the development rate being the highest in a decade, necessitating the need to meet the power sector’s coal demand as a national priority. Riding on robust economic recovery, total coal-based power generation till January 2022 of the fiscal in progress grew by 11.2% on a year-on-year comparison. Whereas domestic coal-based production increased by 17% during this period. The bulk of the coal supply to the power sector was met by CIL on priority. Image Source Also read: Coal India Limited provides 532.41 mt coal up to 26 Jan 2022