Coal Indias Supplies To Non-regulated Sectors Seen Up 16.6% During Jan-Mar

CIL will likely close the current quarter with 33 million tonne (MT) supply to the sector, as per a company statement on Friday. It would lead to 4.7 million tonne more coal, or a jump of 16.6%, from the 28.3 MT supplied in the third quarter of fiscal 2022-23.

Supplies to the non-regulated sector during January-March, expected at 33 MT, would be 3.1 MT more from the comparable quarter of FY22, representing a growth of 10.4%. CIL supplied 29.9 MT to non-regulated sector (NRS) in the final quarter of FY22.

Improved supplies to NRS, from the quarter beginning January 2023, were due to inventory build-up CIL’s pitheads. In March so far, coal stock increase at CIL has been to the tune of 6 kakh tonne per day despite higher supplies to power utilities.

Coal India’s pithead stock, which was at 32 MT as of 31 December, has doubled to a comfortable buffer of 63.8 MT as on 23 March. Stocks are expected hit 68 MT by the end of FY23.

“We are making all efforts to supply higher quantities to NRS customers without affecting supplies to power sector, through increased production" said a CIL official.

During the current quarter, CIL has booked close to 16 MT in e-auctions compared to 15 MT in the previous quarter. With more auctions lined up in the last week of March, coal booking will increase going ahead.

CIL has the option of placing up to 20% of its total production in the e-auction, after fulfilling its fuel supply agreements. Though e-auction sales fetch higher add-on over notified prices, CIL’s priority is to fulfill its FSA commitments and meet the demand surge from the power sector.