Coal news and updates

CIL despatches to power cos above 90% of commitment in last 3 yrs

December 10: Coal India Ltd (CIL) has been despatching more than 90% of the quantity committed under the fuel supply agreements (FSAs) or memoranda of understanding (MoUs) during the last three financial years, an official from the company said.

"Our despatches to the power sector were 91% of the commitment in 2010-11 and 2011-12 and rose to 93% in 2012-13. Even in 2013-14, till October, despatches were at 87% of the commitment," the official said.

He said, in 2010-11, the company had supplied 304.15 million tons (mt) of coal to the power sector as against the FSA quantity of 334.54 mt, which was 91% materialisation.

In 2011-12, despatches to the power sector rose to 312.07 mt as against the FSA quantity of 344.38 mt, again a 91% materialisation, the official said.

However, in 2012-13, despatches rose to 344.37 mt against the targeted FSA quantity of 375.77 mt, showing a 92% materialisation.

Between April and October 2013, ie, the first seven months of 2013-14, the actual despatches to the power sector were at 194.47 mt, which was 87% of the FSA quantity of 222.78 mt.

"The materialisation was down in 2013-14 because a number of power plants had refused to take delivery of coal between May and July," the official added.

Despite lower materialisation in the seven months of 2013-14, the coal stocks position at power plants, as per the CEA report, stood higher at 16.03 mt as on November 28, 2013 as against 9.19 mt recorded on the same date in 2012, the official pointed out.