Coal supply to power sector by Coal India up 7% in FY18

The supply was at 425.4 MT in 2016-17, according to official data.

The supply of fuel by the Coal India Ltd (CIL) to the power sector in March was up by 7 per cent at 42.9 MT, over 40.1 MT in the same month of 2017.

The supply by Singareni Collieries Company Ltd (SCCL) in 2017-18 increased by 4 per cent to 53.47 MT, over 51.50 MT in 2016-17.

Coal supplies are made to the power plants in terms of the fuel supply agreement executed between power generation and coal companies.

Power plants can also take coal through special forward e-auction scheme where coal is offered exclusively for them in regulated sector. Actual supply of coal depends on programme submitted by the power plants, logistics and various other factors.

The government had earlier said that many of the power stations in the country opted to consume coal from their stock for generation and restricted the supplies during major part of the last year and in the initial months of fiscal 2017-18.

The power houses have the option to fulfil the gap between their requisite demand and supply by various means which includes taking coal through special forward e-auction conducted by CIL throughout the year, building up stock during lean period by agreeing to take more coal than their annual contracted quantity, subject to availability and other terms.

Power firms also use the coal produced by captive blocks allocated by government.