Coal news and updates

CIL aiming to soon increase supplies to power plants

December 1: Coal India Ltd (CIL) is hopeful that it will be able to increase its supplies to power plants and help them increase their stock levels with the increase in production in the balance months of 2014-15.

“If the coal stock position at power plants rises, there will be increase in sale of coal through e-auction. Once the stocks build up, power plants will not push for higher supplies and at that point we will see what can be done (whether the e-auction quantity can be increased or not),” CIL’s Director (Marketing) B K Saxena said.

CIL’s profitability is under pressure because of the cap on sale of coal through e-auction since July this year.

Asked about the steps being taken by the company to mitigate the impact of loss of additional revenues because of the cut in the e-auction quantity, Saxena said, “If you look at the figures, the total sale of coal through e-auction in the first half of 2014-15 is almost same as what it was in the same period of 2013-14. October and November figures were, however, lower compared to the previous year.”

In recent months, there has been a huge fall in coal stocks at power plants and the decision to reduce the e-auction quantity was taken by the government to increase supplies to power plants, he said.