Coal India Limited (CIL) is optimistic of supplying 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.
Factors in favour of CIL are a strong 68 MT coal stock build up expected at its pitheads by 2022-23 end, which as of 13 March' 23 was 57.3 MTs. Also, the company would be scaling up its production into a higher orbit maintaining the pace on the back of an unprecedented 700 MTs output, which it is on course to achieve by FY'23 end.
"Even after despatching the planned coal to power utilities in the first quarter of FY'24, 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 state owned coal mining behemoth is confident of meeting the enhanced 610 million tonne (MT) coal supply target to power sector in 2023-24. The target is 20 MTs more than the initially projected 590 MT requirement by power sector.
Of the total 821 MT domestic coal demand projected for the power sector in 2023-24, CIL's target alone accounts for nearly three-quarters at 610 MTs.
By the end of the ongoing fiscal year it is estimated that there would be at least 115 MTs of domestic coal available to the power plants, with 68 MTs at CIL's pitheads and 32 MTs at plants' end. Coal lying at private washeries, goods sheds, ports and captive mines account for around 12 MTs. Rakes on run, that is coal in transit, normally make up 3 MTs of coal. Compared to last year's 92.7 MTs, from the same sources, coal availability in the system would be 22.3 MTs more.
Even in the current financial year the initial target of 565 MTs, to thermal plants, was increased to 569.5 MTs by the power sector in May 2022. Taking the rejigged target into its stride, CIL as of 13 March'23, had already clocked 554 MT supply to power sector.
The company is well on its track to close FY'23 with more than 585 MTs despatch to power sector which represents an 8.3% jump over 540 MTs of FY'22.
"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", said the executive.
Shares of Coal India Limited was last trading in BSE at Rs. 220.70 as compared to the previous close of Rs. 224.35. The total number of shares traded during the day was 316487 in over 6040 trades.
The stock hit an intraday high of Rs. 225.70 and intraday low of 219.35. The net turnover during the day was Rs. 70417107.00.