+
Domestic coal production in February fell 6.1%
COAL & MINING

Domestic coal production in February fell 6.1%

Domestic coal production in February 2021 fell by 6.1% from a year earlier to 67.5 mt, logging the second straight month of yoy fall. The fall in output in February 2021 was mainly due to high base effect (12% yoy growth in February 2020) as well as high level of high base effect with both coal producers and power plants. Inventory with Coal India Ltd (CIL) stood at around 77.8 mt as on February end, up from 66.8 mt at the end of January 2021.

Domestic power plants are also well stocked with coal supplies. Coal stocks at power plants stood at 31.9 mt at the end of February, enough to last 17 days. This has resulted in a fall in coal offtake for the third straight month. Coal offtake fell by 7% yoy during February 2021 after falling by 5% in January 2021 and 2% in December 2020.

Power sector is the major consumer of coal with a share of 80% in total consumption followed by steel sector with a share of 7%, cement and DRI sectors account for 6.5% share each. Improvement in electricity generation and steel production has been supporting demand for coal. Electricity generation from coal based thermal power plants grew by 3.3% yoy in February 2021.

Production of crude steel also rose by 3.8% yoy in February 2021. On the other hand, cement and DRI production continues to remain weak. Cement production was 5.9% lower yoy in Jan 2021 and DRI output fell 6% yoy in February 2021. Fall in cement production for the second consecutive month could indicate waning pent-up demand and normalising of operations in the infrastructure space. DRI production has also fallen due to low demand from end-user industries.

Read the full CARE Ratings report here.


Domestic coal production in February 2021 fell by 6.1% from a year earlier to 67.5 mt, logging the second straight month of yoy fall. The fall in output in February 2021 was mainly due to high base effect (12% yoy growth in February 2020) as well as high level of high base effect with both coal producers and power plants. Inventory with Coal India Ltd (CIL) stood at around 77.8 mt as on February end, up from 66.8 mt at the end of January 2021. Domestic power plants are also well stocked with coal supplies. Coal stocks at power plants stood at 31.9 mt at the end of February, enough to last 17 days. This has resulted in a fall in coal offtake for the third straight month. Coal offtake fell by 7% yoy during February 2021 after falling by 5% in January 2021 and 2% in December 2020. Power sector is the major consumer of coal with a share of 80% in total consumption followed by steel sector with a share of 7%, cement and DRI sectors account for 6.5% share each. Improvement in electricity generation and steel production has been supporting demand for coal. Electricity generation from coal based thermal power plants grew by 3.3% yoy in February 2021.Production of crude steel also rose by 3.8% yoy in February 2021. On the other hand, cement and DRI production continues to remain weak. Cement production was 5.9% lower yoy in Jan 2021 and DRI output fell 6% yoy in February 2021. Fall in cement production for the second consecutive month could indicate waning pent-up demand and normalising of operations in the infrastructure space. DRI production has also fallen due to low demand from end-user industries. Read the full CARE Ratings report here.

Next Story
Infrastructure Urban

ITCONS Gains on New Rs 3.5 Million Defence Contract

ITCONS E-Solutions is trading at Rs 549.00, up by Rs 12.10 or 2.25 per cent from its previous close of Rs 536.90 on the BSE. The scrip opened at Rs 549.00 and has touched an intraday high and low of Rs 549.00, with 200 shares traded so far.A BSE ‘MT’ group stock with a face value of Rs 10, ITCONS touched its 52-week high of Rs 767.00 on 25 September 2024 and a 52-week low of Rs 166.70 on 5 August 2024. Over the past week, the stock has fluctuated between Rs 560.00 and Rs 510.60. The company's current market capitalisation stands at Rs 3.3 billion.Promoters hold 58.22 per cent of the compan..

Next Story
Infrastructure Urban

Delhi Extends EV Policy Till March 2026

The Delhi government has extended its existing Electric Vehicle (EV) Policy until 31 March 2026, or until a revised version is approved. The decision was made during a Cabinet meeting chaired by Chief Minister Rekha Gupta on Tuesday.According to Transport Minister Pankaj Kumar Singh, the draft of the new policy will undergo broader public consultation before being finalised, prompting the extension to allow time for thorough stakeholder engagement.The consultation process will include inputs from citizens, environmental groups, academic institutions, industry experts, and private firms. Key fo..

Next Story
Infrastructure Urban

Ather Crosses 400 Fast Chargers in Maharashtra

Electric two-wheeler manufacturer Ather Energy announced on Thursday that it has surpassed 400 fast charging points under its Ather Grid network across Maharashtra.The company's fast charging infrastructure now spans 35 cities in the state, including key urban centres such as Mumbai, Nashik, Pune, and Nagpur."Crossing 400 fast chargers in the state is about giving riders the assurance that they'll always find a charger when they need one. As we expand our retail presence, the charging network will continue to grow in tandem to make EV ownership truly seamless," said Ravneet Singh Phokela, Chie..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?