CIL clocks record rake loading; 5 subsidiaries post highest-ever loading since inception

• Despite the growth in rail mode loading and in merry-go-round, CIL's supplies in volumes terms shrunk marginally, primarily due to less lifting by power sector

• With non-regulated sector customers showing a healthy appetite for coal, loading to the NRS sector jumped up to a phenomenal 33.5 percent growth

New Delhi: Accelerating its rake loading, Coal India Limited (CIL) loaded 372.5 rakes on March 19, from its own sidings, the highest for any day so far during the ongoing fiscal. Of this, Power Sector accounted for 90 percent at 335 rakes. In the process, five subsidiaries of CIL posted their highest-ever loading since inception. For the month of March, until March 26, CIL loaded an average of 312 rakes per day, clocking a robust 24.6 percent growth compared to the same date of March 2020 when the loading was 250.3. 

Similarly, average loading to the power sector clocked 22.7 percent growth in March so far at 269.2 rakes compared to 219.4 rakes in the same period of the last year. 

CIL's power sector rake loading up by 7 percent

After CIL's supplies shrunk by 21 percent amid Covid-19-triggered downward spiral in Q1, the company bounced back strongly by registering 6 percent growth from July 2020 onwards till now. Progressive rake loading for the year as well logged 10.5 percent growth at 240.8 rakes per day until March 26 against 217.9 rakes in the same period of the previous year. Power sector loading was also up by 7 percent during the year till March 26. CIL could load 202.6 rakes per day during the year so far, against 189.3 rakes loaded in the same period of the last year.

CIL coal supply volumes yet to reach pre-Covid levels

Despite the growth in rail mode loading and 2 percent growth in merry-go-round, CIL's supplies in volumes terms shrunk marginally compared to the last year, primarily due to less lifting of committed quantity by power sector and reduced despatch through road mode during the pandemic lockdown, resulting in a fall of around 32 percent. These two factors hit CIL's supplies during the year. 

ALSO READ

1. Commercial coal mining: Govt launches 2nd tranche of auction, 67 mines on offer

2. 3 coal projects of NCL achieve their production target, ahead of schedule

However, with non-regulated sector customers showing a healthy appetite for coal, loading to the NRS sector jumped up to a phenomenal 33.5 percent growth during the year — which is a five-year high. NRS customers lifted 38.2 MTs of coal during FY21 till March 26 against 28.6 MTs in the same period of the last year.

CIL introduced spate of measures to improve demand

CIL has introduced a spate of measures to improve demand during covid slowdown. These include waiver of performance incentives for power sector FSAs, allowing booking of coal quantities not lifted for non-power sector FSA consumers in the subsequent months of the FY, extending payment schedule of coal value and lifting validity of the sale order, facilitating conversion of coal transportation mode from road to railway to auction route customers. 

These measures helped the company scale up the supplies to 565.5 MT.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram & Twitter as well. Join PSU Watch Channel in your Telegram and follow us on Twitter to stay updated)