Coal India ‘s fuel allocation under the exclusive e-auction scheme for non-powered consumers such as steel and cement has increased five-fold to 6.10 million tons ( MT) in the last two months.
According to the latest government data, the state-owned company allocated 1,20 MT of coal to non-powered consumers under the scheme in April-May 2019.
This growth is taking place in the midst of Coal India Ltd (CIL) seeking to tap into the non-power sector for the consumption of its coal following a slump in demand for dry fuel.
According to the scheme, CIL allocated 2.19 MT of coal last month against no fuel allocated by the PSU in May 2019, according to the data.
For fiscal year 2019-20 as a whole, the allocation of coal to the PSU under the scheme dropped to 8.03 MT from 11.36 MT in the previous year.
The scheme was launched in 2015-16 to make coal available to non-powered consumers, including captive power plants.
Previously, CIL had said that it continues to face high demand for coal, with most of its customers, such as the power sector, shying away from raising adequate quantities.
The power sector, which accounts for nearly 80 per cent of CIL ‘s total supplies, is brimming with almost 50 MT of coal stock, sufficient for 29 days of consumption, as the PSU said at the end of May.
Many plants have begun to further restrict supplies from CIL, reducing coal shipments, he said.
During May, the power sector lifted 30.15 MT of coal from CIL, down 25 per cent from 40.38 MT in the same month last year.
In order to find ways to expand its supplies, CIL focuses on non-powerful consumers such as sponge iron, cement, fertilizers and steel companies, persuading them to replace their imported coal with domestic supplies.
