CIL Output Flat in Q1 on Stocked up Power Units

Image Source: The Financial Express

FE reported that Coal India Ltd has produced 137 million tonne of the fuel in Q1 FY20, inching up only 0.1% YoY. The miner supplied 119.6 million tonne of the fuel to power plants in the quarter, which is 3.2% lower than corresponding quarter the previous fiscal. At the end of Q1, power plants across the country had stocked up 30.6 million tonne of coal, 53% more than the levels in end-June during 2018. On top of that, CIL has a stock of about 33 million tonne.

A CIL spokesperson told FE that since there was a significant rise in power generation from nuclear, hydro and other renewable energy sources, coal-based power plants now have significant stock with them and electricity production will not be affected due to fuel shortage.

Breaching the 600 million tonne production level for the first time, the world’s largest coal miner produced 607 million tonne of the fuel in FY19, recording an annual growth of 7%.

Source : FE