Coal India has despatched more coal in this fiscal than the whole of the previous year.
With still a month-and-a-half remaining in the fiscal. Coal India has supplied 575 million tonnes (mt) till February 16, 2022 compared with 574mt in 2020-21.
Despatches to power plants till the middle of this month were at 468.4mt, up 23 per cent compared with 381mt in the corresponding period a year ago. The public sector miner said that despite wild fluctuations, coal-based power generation till January was up 11.2 per cent over the corresponding year ago period.
With imports going down amid rising international prices, Coal India said in a statement that it had to ensure adequate supply for coal-based power generation.
The miner plans to supply a total of 548mt to the power sector in 2021-22 according to the projection of Central Electricity Authority, which means a 103mt volume jump compared with the power sector despatch of 445mt in 2020-21.
There is also a plan to scale up the production level to 2.6 mt per day in March from the current level of 2.3mt.
Coal India chairman Pramod Agrawal said in the analysts call on the third quarter earnings that the total despatch by the end of the year is expected to be in the range of 660-670mt. “We may end the year with a production of more than 630mt,” said Agrawal.
The Coal India chairman also pointed out the immediate need to consider an increase in coal prices for sustainability as demand for coal from indigenous sources surge. However increasing a price means taking all the stakeholders on board which could take longer.
“Price hike should take place immediately,” he said.
“For certain subsidiaries it has become so important that without a hike, it would be difficult for them to survive.”
The receivables of Coal India is also estimated to go down with states expected to clear some of their dues by March end.
“Some of the state governments have requested us to bear with them till March end and they have agreed that by March end they will clear most of the dues,” said Agrawal.
