Coal supply to power sector improves: CIL

The world’s largest coal producer Coal India Ltd (CIL) has said that the supply of coal to the power sector has increased in the months of October, November and December, after the supply hit a low during the months of August to October.

“The percentage materialization of coal supply to the power stations against the commitment as per fuel supply agreements/ memorandum of understandings in the months of October, November and December (upto 20th) have been 88 per cent, 96 per cent and 103 per cent respectively. It is also noted that the percentage growth in the power generation compared to the same period previous year till November has been 8.8 per cent,” the firm said in a statement on Thursday.

This comes after about four million tonne of e-auction coal for the month of October was diverted following a sharp fall in the offtake to the power sector during the August and September. During the financial year 2010-11, out of Rs 50,233.59 crore from net sales, e-auction revenues was around Rs 8,810 crore.

The reasons for the fall in production included excessive rainfall in August and September, varying from 1.5 to 3 times compared to the same period last year, followed by the festive season. Apart from this, the Telangana agitation which affected the Singareni Coalfields supply in Andhra Pradesh too added to the woes.

Putting the blame on the non-availability of wagons, the statement said, “Coal India is prepared to load 200 rakes per day, of which 155 rakes could go to power stations which will help in improving the stocks at their end. But, it is faced with short supply of wagons currently and has been able to get on an average 186 rakes a day of which power stations have received nearly 148 rakes daily.”

During the months of August-October coal supply to 89 thermal power stations got affected due to unprecedented rainfall. “CIL’s production and offtake is largely dependent on the climatic conditions over which the Company does not have any control. Within the limitations, this company is working to deliver its best,” it said.