After a record-breaking coal production of 777 million tonnes (MT) in 2021-22, domestic coal production continues to witness an rising development within the present monetary 12 months as properly.
The complete domestic coal production in 2022-23, as of May 31, 2022, is 137.85 MT, which is 28.6 per cent extra as in comparison with the production of 104.83 MT in the identical interval of final 12 months. This development is being maintained in June, 2022 additionally, the Ministry of Coal stated at present.
The coal production by Coal India Ltd (CIL) is 28 per cent greater than the production in the identical interval of the earlier 12 months (as of June 16, 2022). The Domestic coal production goal for the present monetary 12 months is 911 MT which is 17.2 per cent greater than the earlier 12 months.
The coal imports for mixing by the Domestic Coal Based (DCB) energy crops have dropped to eight.11 MT within the 12 months 2021-22 which has been the bottom coal import within the final eight years. This was potential solely because of the sturdy coal provide from domestic sources and elevated domestic coal production.
The Imported Coal Based (ICB) energy crops had imported coal of greater than 45 MT per 12 months from 2016-17 to 2019-20. However, coal import by the ICB energy crops dropped to the bottom degree of 18.89 MT in 2021-22 and the technology from these crops additionally dropped to 39.82 billion models (BU) within the 12 months 2021-22 as in comparison with the 100+ BU which these crops have been producing since fairly a while. This 12 months too their technology stays very low on account of excessive worth of imported coal.
In the final 5 years, the coal-based energy technology has grown at a CAGR of 1.82 per cent whereas the domestic coal provide to energy sector had grown at a CAGR of 3.26 per cent. Thus, coal provide to energy sector has outpaced the expansion in coal-based energy technology and continues to take action within the current 12 months too.
In the 12 months 2021-22, coal provide from CIL to the DCB energy crops has been greater than the availability required to be made below Fuel Supply Agreement (FSA). CIL had equipped 540 MT coal, out of which 483 MT coal was equipped towards FSA. This coal was ample for the facility crops to run at 69 per cent PLF whereas the DCB energy crops operated at a PLF of solely 61.3 per cent within the 12 months 2021-22. In the 12 months 2022-23, as per FSA, CIL was supposed to produce 120.67 MT coal to its linked energy crops (at 85 per cent PLF) whereas CIL had equipped 129.58 MT coal (until 16.06.22). This provide is 7.4 per cent greater than the availability required by the crops in the event that they function at 85 per cent PLF. The crops have operated at about 70 per cent PLF and the CIL coal provide to its FSA-linked crops is 30.4 per cent greater than their requirement.
With elevated production, the rake provide from CIL to the facility sector has additionally been at an all-time excessive. The rake loading to energy sector elevated from 215.8 rakes per day in 2020-21 to 271.9 rakes per day in 2021-22, registering a development of 26 per cent.
In the present 12 months additionally (until June 16, 2022), the rake provide from CIL to energy sector has elevated by 25 per cent as in comparison with the identical interval of final 12 months. At the identical time, coal shares at pit head energy crops are a lot larger than the distant crops.
The DCB energy crops have generated a document excessive energy of 3.3 BU per day within the month of June 2022 (until June 16, 2022). The coal inventory on the DCB energy crops throughout this era, nonetheless, haven’t depleted, moderately the identical has elevated from 21.85 MT (as on June 1, 2022) to 22.64 MT ( as on June 16, 2022). This displays the sturdy coal production and ample provide to maintain up with the rising demand. The coal inventory is ample for greater than 10 days’ requirement.
As on June 16, 2022, coal inventory at totally different domestic coal mines is greater than 52 MT, which is ample for about 24 days requirement of energy crops. In addition to it, about 4.5 MT coal inventory is on the market at varied Goodshed sidings, Private Washeries and ports and is awaiting to be transported to the facility crops.
During the monsoons, regardless of having excessive coal inventory at mine ends, the coal corporations face issues in transporting coal to the sidings on account of flooding of mines and the moist coal jamming the Coal Handling Plants conveyor methods.
Even by finish of the second quarter, coal shares stay excessive at CIL mines when shares are low at thermal plant finish. There domestic coal production shouldn’t be a problem. The coal provides from CIL are greater than the FSA necessities. However, CIL has agreed to import coal for the energy sector customers (State Gencos and IPPs) and have floated a short-term tender for two.4 MT imported coal for provide inside three months and two long run imported coal provide tenders of 6 MT every for provide over a interval of one 12 months.
The ICB energy crops and the Gas primarily based energy crops have been working at very low capacities on account of constraints in straightforward availability of required gas and points associated to PPAs. However, coal provides from CIL and different domestic sources is ample to make sure that there may be satisfactory coal on the energy crops in the course of the monsoon season.
(Only the headline and film of this report might have been reworked by the Business Standard workers; the remaining of the content material is auto-generated from a syndicated feed.)