Coal India’s additional supply reduced imports by 90 million tonnes in FY21

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State-owned Coal India Limited (CIL) said it provided additional coal supply in the country during 2020-21, which prompted customers to go for 90 million tonnes of domestic coal instead of importing it from abroad. The public sector undertaking said in a statement that it curbed coal imports to the tune of 90 million tonnes. 

Sustaining its growth trajectory throughout the fiscal, over burden removal (OBR) logged 17 per cent growth easing the way for faster future production, the statement said. OBR is the extraneous material that overlays the coal seam, removal (OBR) of which makes the dry fuel’s production easier.

“In the absence of our import substitution measures through a host of concessions and benefits, the customers would have had no alternative than to source coal from imports. In that, it was a productive and timely move,” the company said. The company opened a new window exclusively for coal importers in October last year.

CIL allowed its subsidiaries to sign memorandum of understandings (MoUs) with 17 power plants to substitute their imports with its own coal, for blending. Additional coal was allocated to central and state power generation companies (gencos), under flexi-utilisation, enabling them avert coal imports.

Annual contracted quantity (ACQ) for power plants was enhanced to 100 per cent of normative requirement from 90 per cent. Increased quantities of coal was offered to non-regulated sectors against fuel supply agreements (FSAs) up to 100 per cent of ACQ.

CIL set a new high in booking 124 million tonnes of coal under five e-auction windows in 2020-21 eclipsing the previous record of 113.6 million tonnes achieved in 2016-17. Compared with 66 million tonnes booked in 2019-20, CIL logged a strong 88 per cent growth in auction bookings. In absolute terms, the increase is 58 million tonnes.

CIL accounts for over 80 per cent of the domestic coal output.

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