Coal India ‘s fuel allocation under the exclusive e-auction scheme for the non-power sector increased three-fold to 6.66 million tonne (MT) during the period April-June of the current financial year. Such rise is taking place in the midst of Coal India (CIL) trying to tap the non-power sector into the consumption of its coal as a result of a slump in demand for dry fuel. CIL allocated 2.20 MT of dry fuel to the sector under the scheme for the period April-June of the last financial year, as per the latest government data.
However, the amount of coal allocated by the Maharatna company under the scheme fell to 0.56 MT in the last month, from one million tons allocated in June 2019-20, the data showed. For the entire fiscal year (2019-20), the allocation of coal to the PSU under the scheme dropped to 8.03 MT from 11.36 MT in the previous year, according to reports.
The scheme was launched in 2015-16 to make coal available to non-powered customers, including captive power plants. CIL, which has an ample supply of coal, has a low market for dry fuel. The power sector is one of the largest users of Coal India.
The firm, which is reeling under a pandemic stress that has had a negative effect on demand and the supply of dry fuel, said this month that the situation will remain uncertain in July-September, as some states are resorting to fresh lockdowns.
The state-owned miner produced 18.05 MT of coal during July 1-16, compared to 19.61 MT produced in the same timeframe last year.
Coal output in some of the major mines is still affected as a result of high coal stocks and less waste, the PSU said. Pithead ‘s stock of CIL as of 16 July is 72.88 MT compared to 33.17 MT for the same span last year, it said. Coal India accounts for more than 80% of domestic coal output.
