CIL plans to supply 156 million tonne coal to power plants during April-June

In a statement on Tuesday, the state-run company said that a buildup of 68 million tonne coal stock is expected at the pitheads by the end of March. As of 13 March, the stock at pitheads stood at 57.3 million tonne.

“Coal India Limited (CIL) is optimistic of suppling 156 million tonnes (MTs) of coal to power sector during April-June’23 quarter amid concerns over spike in coal demand. This would be 25.6% of the enhanced annual dispatch target of 610 MTs slated for this sector in 2023-24,” it said.

The coal mining major also said that the company would be scaling up its production into a higher orbit maintaining the pace on the back of an unprecedented 700 million tone output, which is likely to be achieved the end of the FY23. 

 “Even after despatching the planned coal to power utilities in the first quarter of FY24, CIL is likely have a healthy 50 MT coal stock at its pitheads by June’23 end” said a senior official of the company. 

The efforts to boost supply to the power supply comes amid concerns of a high demand during the April-June period. The concerns have been accentuated following the crisis situation witnessed during the same period last year with low availability of domestic coal.

According to the statement, the state owned company is confident of meeting the enhanced 610 million tonne coal supply target to power sector in 2023-24. The target is 20 million tonne more than the initially projected 590 million tonne requirement by power sector, it said. 

Of the total 821 million domestic coal demand projected for the power sector in 2023-24, CIL’s target alone accounts for nearly three-quarters at 610 million. 

 By the end of the ongoing fiscal year it is estimated that there would be at least 115 million tonne of domestic coal available to the power plants, with 68 million tonne at CIL’s pitheads and 32 million tonne at plants’ end. 

Coal lying at private washeries, goods sheds, ports and captive mines account for around 12 million tonne, Coal India said, adding that rakes on run, that is coal in transit, normally make up 3 million tonne of coal. 

The company is well on its track to close FY’23 with more than 585 million tonne despatch to power sector which represents an 8.3% jump over 540 million tonne of FY22. 

“We are fully cognizant of the importance of meeting the demand surge from power sector and would do everything within our means to meet it”, the company executive said.