India’s Coal Production Goes Higher by 28%

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Source: Ministry of Coal

The total domestic coal production in 2022-23, as of 31st May, 2022 is 137.85 MT. This is 28.6% more as compared to the production of 104.83 MT in the same period of last year. The coal imports for blending by the Domestic Coal Based (DCB) power plants have dropped to 8.11 MT. DCB power plants generated a record-high power of 3.3 BU per day in the month of June 2022 (till 16th June 2022).

June 2022 : After a record-breaking coal creation of 777 Million Ton (MT) in 2021-22, the homegrown coal creation keeps on seeing a rising pattern in the ongoing monetary year too. The complete homegrown coal creation in 2022-23, as of 31st May 2022 is 137.85 MT, which is 28.6% more when contrasted with the development of 104.83 MT in a similar time a year ago. This pattern is being kept up with in June 2022 too. The coal creation by Coal India Ltd (CIL) is 28% more than the creation in a similar time of the earlier year (as of 16th June 2022). Homegrown coal creation focus for the ongoing monetary year is 911 MT which is 17.2% more than the earlier year.

The coal imports for mixing by the Domestic Coal Based (DCB) power plants have dropped to 8.11MT in the year 2021-22 which has been the least coal import over the most recent eight years. This was conceivable exclusively because of the hearty coal supply from homegrown sources and expanded homegrown coal creation.

The Imported Coal Based (ICB) power plants had imported coal in excess of 45 MT each year from 2016-17 to 2019-20. Nonetheless, coal import by the ICB power plants dropped to the most minimal degree of 18.89 MT in 2021-22 and the age from these plants likewise dropped to 39.82 BU in the year 2021-22 when contrasted with the 100+ BU which these plants have been creating since a long while. This year too their age remains extremely low because of the exorbitant cost of imported coal.

Over the most recent five years, the coal-based power age has developed at a CAGR of 1.82% through the homegrown coal supply to the control area had developed at a CAGR of 3.26%. In this manner, coal supply to the control area has outperformed the development in the coal-based power age and keeps on doing as such in the current year as well.

In the year 2021-22, coal supply from CIL to the DCB power plants has been more than the stockpile expected to be gone under Fuel Supply Agreement (FSA). CIL had provided 540 MT coal, out of which 483 MT coal was provided against FSA. This coal was adequate for the power plants to run at 69% PLF through the DCB power plants worked at a PLF of just 61.3% in the year 2021-22. In the year 2022-23, according to FSA, CIL should supply 120.67 MT coal to its connected power plants (at 85% PLF) through CIL had provided 129.58 MT coal (till 16.06.22). This supply is 7.4% more than the inventory expected by the plants assuming that they work at 85% PLF. The plants have worked at around 70% PLF and the CIL coal supply to its FSA-connected plants is 30.4% more than their necessity.

As of 16th June 22, coal stock at various homegrown coal mineshafts is in excess of 52 MT, which is adequate for around 24 days prerequisite of force plants. Notwithstanding it, around 4.5 MT coal stock is accessible at different Goodshed sidings, Private Washeries, and ports and is anticipated to be shipped to the power plants.

The ICB power plants and the Gas based power plants have been working at exceptionally low limits because of limitations in simple accessibility of required fuel and issues connected with PPAs. Nonetheless, coal supplies from CIL and other homegrown sources is adequate to guarantee that there is sufficient coal at the power plants during the storm season.

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