Coal India Limited (CIL) chairman Pramod Agrawal said on Monday that the company is ready to fulfill its share of its promised supply of dry fuel to the energy sector. His comments came as the monsoon season has already hit many parts of the country and
He said the company will also make no effort to boost coal production.
While monsoons have hit many parts of the country, Pramod Agrawal, chairman of Coal India, said the Maharatna company is bracing itself to meet its share of coal supplies to the energy sector in the coming months, stressing that it is building in a timely manner. of dry fuel supply through electricity generating plants will be crucial.
In many parts of the country, people experienced power outages at the start of the summer season this year due to a shortage of coal supplies at several thermal power plants.
“Timely stockpiling by the power plants when coal is available will be critical. We are preparing to meet our share of the power supply commitments in the coming months,” said Mr Agrawal.
He stated that the company aims to close the first quarter with incremental production of 35 million tons compared to the same quarter last year, and said the company’s production pace is progressing in this direction.
“We will make every effort to increase and decrease the output,” he added.
Declaring the recent coal shortages a “misnomer”, Mr Agrawal said Coal India’s mines contain around 46 million tonnes of coal, while the coal stock in power stations stands at around 24 million tonnes.
The CIL chairman said the supply-demand mismatch in the recent past had three reasons. First, there was an unforeseen escalation in power demand due to a strong post-pandemic economic recovery, second, the scorching summer heat across the country’s northern plains further accelerated demand.
Finally, international coal prices, which have been simmering in recent months, have deterred imports from international coal-fired power stations, he explained.
“The first quarter is normally very productive for us. We recorded production growth of almost 29 percent during the first two months of the current fiscal year at 108 million tons compared to the same period last year, the highest ever for this period.” said Mr Agrawal.
At the same time, supply to the electricity sector grew by 16.7 percent at 102 million tons.
CIL aims to supply 565 million tons to the energy sector during the current fiscal period and the company’s efforts are focused on meeting this, he noted.