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Allaying apprehensions of a possible shortfall in supply to the power sector, Coal India Limited (CIL) on Monday said that it is concentrating its efforts to meet the projected coal demand of this regulated sector on “priority basis”.
The state-owned miner said it had supplied an all-time high of 528 million tonnes (mt) of coal to the power utilities till March 24 this year. This is 98.5 per cent of the prorated demand of 536 mt projected by the Ministry of Power and Central Electricity Authority.
The current trend of coal stock accumulation indicates that CIL is likely to open FY23 with above 60 mt at its pitheads. The stockpile of domestic coal at power plants is likely to rise around 25 mt by the closure of the fiscal, the bulk of it augmented by CIL’s supplies. Further, an additional 4.5 mt will be available at goods sheds, washeries and ports, the company said in a statement.
Indigenous coal stock at power houses monitored by CEA stood at 23.7 mt as of March 24.
Summer demand
“CIL is cognizant of the importance of meeting increased coal demand of power sector as the generation will step into higher orbit with the advent of summer. With sufficient coal in the system and stepping up its production CIL is geared to meet the summer demand,” it said in the statement.
The company had offered an additional 11.2 mt coal in two rounds on ‘as is where is basis’, to boost coal stocks at the generating units, when an unprecedented spike in power generation was witnessed in September 2021. The offer was made to 12 central and state gencos from its highly stocked mines through road-cum-rail mode.
With 35 mt of coal lifted through special forward e-auction window, meant for power sector, the year-on-year growth was 53 per cent till date.
Power at ‘just price’
Power houses without power purchase agreement (PPA) have no cause for worry as they are eligible for participation under a separate auction window called SHAKTI B(viii-a).
“CIL’s priority is ensuring adequate supplies to power sector and see that the nation gets power at just price. The aim is to securitize energy at least cost,” a company executive said in the statement.
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