Metals & Mining News

cil: CIL says making all efforts to supply higher quantities of coal to non-regulated sector


State-owned CIL on Friday said it is making all efforts to supply higher quantities of coal to the non-regulated sector (NRS) without affecting supplies to the power sector, through increased production. The statement comes days after the maharatna firm stated that it is gearing up to meet the demand of coal from the power sector amid early onset of summer and a pick up in the industrial demand for electricity.

Stepping up on supplies, Coal India Ltd (CIL) is poised to post 16.6 per cent growth in coal despatch to its non-regulated sector customers in the fourth quarter of the ongoing fiscal, compared to the preceding quarter.

Coal despatch to NRS customers has been averaging 3.67 lakh tonnes per day in the fourth quarter of the ongoing fiscal till date.

CIL is likely to close the ongoing quarter with 33 million tonnes (MT) supply to this sector. It would mean 4.7 MT more coal to NRS, or a jump of 16.6 per cent, compared to 28.3 MT that the company supplied in the third quarter of the year, the coal behemoth said in a statement.

Supplies to NRS during the January-March period were expected at 33 MT, 3.1 MT more against the comparable quarter of FY’22 representing a double-digit growth of 10.4 per cent.

CIL supplied 29.9 MT to the non-regulated sector in the final quarter of the last fiscal.

“The improved supplies to NRS, from the quarter beginning January’23, were fueled by the accretion in the coal inventory at CIL’s pitheads. In the current month of March, coal stock increased at CIL’s end was to the tune of 6 lakh tonnes per day so far despite higher supplies to power utilities,” the company said. CIL’s pithead stock which was 32 MT at the third quarter ending December 31, 2022 has doubled to a comfortable buffer of 63.8 MT as on 23 March. CIL’s stocks are expected to be 68 MT by the fiscal’s closure.

In the ongoing quarter of FY’23, CIL has booked close to 16 MT in e-auctions which is one MT more than 15 MTs of the previous quarter. With more auctions lined up in the last week of March, coal booking will go even higher by the quarter’s end.

CIL has the option of placing up to 20 per cent of its total production under the e-auction hammer after fulfilling its fuel supply agreements.


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