Coal India claims to be ready to meet surge in fuel demand from power sector

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State-owned Coal India Ltd said that it is well geared to meet any surge in demand for coal from the power sector. The statement follows power demand touching an all-time high of 187.3 GW last Friday. “CIL (Coal India) is well geared to meet any surge in demand for the dry fuel from the power sector especially on the back of close to 63 million tonnes stock at its pitheads,” the PSU said in a statement.

The company is also pushing ahead for increased production, committed to shoring up the supplies to coal-fuelled power plants. In this backdrop, close to 67 per cent of the total coal-fired power generation in the country is fuelled through CIL’s supplies.

Of the 199 GW of coal-based power programmed for generation per day during the ongoing fiscal, 133 GW is scheduled from CIL linked coal.

Average coal-based power generation of power per day which was 2.795 BU till Friday last week, shot up to 3.072 BU, a jump of nearly 10 per cent. Coal-based power generation remains consistently high among all other categories.

Coal India is focusing on ramping up its supplies to pithead based power plants to higher levels. This would influence in cost per unit of power generated coming down. Of the total 3.906 billion units (BU) generated on Friday, coal-fired generation chipped in the bulk with 3.072 BU.

The government is also considering opening up coal marketing. Currently, production by Coal India is allocated through a number of different methods, including multiple sector-based auctions and coal linkages based on recommendations by the Union government, and Fuel Supply Agreements (FSAs).

India produced about 729 million tonnes of coal and imported about 248 million tonnes in the previous fiscal. Coal India accounts for over 80 per cent of domestic production. The government, in June 2020, had opened up coal mining for commercial use.

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