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CIL to raise coal stock at thermal power plants (TPPs) to 45 MTs by FY22-end

CIL plans to boost coal stock at thermal power plants (TPPs) to over 45 million tonnes (MTs) by the end of the ongoing fiscal
CIL to raise coal stock at thermal power plants (TPPs) to 45 MTs by FY22-end
CIL to raise coal stock at thermal power plants (TPPs) to 45 MTs by FY22-end
  • CIL is aiming for the highest-ever closing stock at power plants. The previous high was 45 MTs in 2020, said a statement
  • The intent is to maintain a steady supply of coal to power plants during summer and monsoon months to avoid disproportionate demand-despatch scenario

New Delhi: Coal India Limited (CIL), under the guidance of the Ministry of Coal, has drawn up plans to boost coal stock at thermal power plants (TPPs) to over 45 million tonnes (MTs) by the end of the ongoing fiscal, from its own sources, said CIL in an official statement on Thursday. “CIL is aiming for the highest-ever closing stock at power plants. The previous high was 45 MTs in 2020,” the statement added. At a workshop held on December 11 in Kolkata with senior officials of CIL and its subsidiaries, Coal Secretary Dr Anil Kumar Jain underscored the importance of shoring up coal stocks at power plants with indigenous coal where CIL is to take lead role.

The intent is to maintain a steady supply of coal to power plants during summer and monsoon months to avoid disproportionate demand-despatch scenario, which precipitated the recent coal crisis. The focus is also to reduce coal imports in substitutable category.

CIL to scale up coal stock at TPPs to 25 MTs by Dec-end

“Coal stock enhancement to 45 MTs at thermal power plants by the fiscal-end is based on a projection where the average coal-fired power generation of previous five years, from December to March, was considered and increased by 7 percent. Volume of coal required to meet this generation and additional stock build up was then worked out,” said the statement.

With current indigenous coal stock of around 20 MTs at power plants (14th December), major portion bolstered by CIL, the company is focused on lifting its component to 25 MTs by the end of the current month. Gradually the stock would be scaled up to 45 MTs by March end.  

Dues owed by gencos creating liquidity crunch: CIL

Though coal sale outstanding dues from state and Central power gencos stepped down till November-end, the dues are still substantial, especially from state generators, said CIL. “This creates liquidity crunch in some of CIL’s subsidiaries like WCL, ECL and BCCL which require large capex push,” said the statement.

Despite this, CIL prioritised supplies to power plants to satisfy their increased appetite for coal on the back of the recent spike in demand. CIL’s current despatch trend indicates record high supply to the power sector by the closure of the fiscal, overtaking 491 MTs of FY19.

CIL’s despatches to power plants peaked to a record 340 MTs progressive ending November, posting 23 percent growth with volume increase of 62.6 MTs, on a year-on-year comparison.   

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