Coal India Has Enough Stock for Non-Power Sector, Ministry Says

(Bloomberg) -- Coal India Ltd. has sufficient stock to boost supply to the country’s non-power sector, the government said in a statement Saturday, assuaging fears of any shortage given rising demand for electricity from domestic producers.

As the economy recovers from the pandemic, the company’s despatch to the non-power sector during the April to January period was at 101.7 million tonnes (MTs) -- down 3% from a year earlier. It was, however, up 8.2% compared to the corresponding period of a Covid-free financial year to March 2020.

“CIL has sufficient buffer stock to further increase supply to the non-power sector,” the government said, adding that unusually high international coal prices had proved to be a hindrance for importing the requisite quantity leading to scarcity of coal.

Some Indian power producers had sought to secure coal imports after supply disruptions and rising demand for coal left India grappling with shortages last year.

Read: India States Hit by Power Outages as Coal Supply Still Tight (1)

The current financial year to March 2022 has witnessed an unprecedented surge in power generation, with the growth rate being the highest in a decade, the government said. That necessitated the need to meet the power sector’s coal demand on a national priority.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.