Coal Dispatch to Power plants up 15% by August


New Delhi :Public Sector Coal miner Coal India Ltd (CIL) has dispatched 167.86 MT Coal to the Power sector by August 5th, thereby achieving a 15% growth over the corresponding period last year, informed the Minister of Railways, Coal, Finance & Corporate Affairs, Piyush Goyal in a written reply to a question in Rajya Sabha yesterday.


CIL has reported 10.6% growth in production at 40.56 MT ( Million Tonne) in the month of July, against 36.69 MTin July 2017. The Cumulative production for the April-July period has also increased by 14.1% to 177.43 MT, which was 155.53 MT during the corresponding period last fiscal.


The growth in dispatch of coal to Power Sector has helped coal based Thermal Power generation to achieve positive growth of 5.3% and 101.3% of the programme in the 1st Quarter of 2018-19. The coal stock at power plants depends on a number of factors like availability of suitable coal transport arrangement, payment of outstanding dues of the coal company, scheduling of power depending on merit order dispatch position of the plants etc. Moreover, in order to meet the power demand, many generating companies have opted to divert coal to the more cost efficient power plants under the provisions of Flexible Utilization of Domestic Coal Policy (June, 2016).

In the first quarter of 2017-18, some power plants regulated coal intake due to low demand for power generation and preferred to consume coal from their stock. In the second quarter of 2017-18, there was a sudden spurt in demand for thermal power, arising out of the drop in generation from other sources which gave sudden rise in coal demand at the Power House end which were receiving coal from Coal Companies including Mahanadi Coalfields Limited (MCL) and several Eastern Coalfields.

The progress of production and off-take of CIL is monitored and reviewed on a regular basis. New rail lines are being laid for smooth evacuation of increased coal production from the mines of growing coalfields of South Eastern Coalfields Limited (SECL), MCL and Central Coalfields Limited (CCL).

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