The move would result in a reduction in forex output resulting from coal imports and would help CIL expand its supply volumes.
This week, state-owned CIL will hold discussions with consumers in the cement sector and captive power producers (CPPs) on the replacement of imports with domestic coal, in the midst of the PSU, which is facing high demand for dry fuel.
Coal India (CIL) will hold discussions through a video conference, the PSU said in separate notices to consumers in the cement and CPP sectors.
“In order to interact with the consumers for substitution of import by the use of domestic coal, a meeting has been scheduled by Coal India Ltd to be held on 18th June, 2020 for consumers of cement sectors through video conference” the notice said.
The deliberations with CPPs will be held on Saturday, the PSU said in the notice. “In this regard, consumers (cement and CPP)….are requested to join the meeting to discuss & deliberate on the issue related to the substitution of coal import,” it added.
CIL continues to meet the high demand for coal, with most of its customers, such as the power sector, shying away from raising adequate quantities.
In a bid to facilitate import substitution and boost supply volumes, CIL recently asked the government to lower the rail tariff for the transport of coal to its customers. CIL mainly targets domestic coal-fired power plants and non-oil-based customers who import coal. In 2019-20, around 150 million tons (MT) of dry fuel were imported.
The PSU is looking to replace its supplies with domestic coal. The move would result in a reduction in forex output resulting from coal imports and would help CIL expand its supply volumes.
The power sector, which accounts for nearly 80 per cent of CIL ‘s total supplies, is overrun by nearly 50 MT of coal stock, sufficient for 29 days of consumption, as at the end of May. Many plants have begun to further restrict supplies from CIL, reducing coal shipments.
During May, the power sector lifted 30.15 MT of coal from CIL, down 25 per cent from 40.38 MT in the same month last year. Coal India accounts for more than 80% of domestic coal production.
