Coal India zooms ~5% as supplies to power sector surges 14%

19 Apr 2022 , 01:02 PM

Coal India Limited (CIL) raised its supplies to thermal power stations by 14.2% during the first half of April’22 compared to the same period last April, amidst the spiraling power generation.

CIL’s supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs in a similar period April 21.

The company had accelerated its production to 26.4 MTs during the first half of April’22 registering 27 percent year-on-year growth. The company is heading for its highest April production ever.

Output expansion in volume terms was 5.7 MTs. To tide over the intense demand, CIL has made available additional 8.75 MTs of coal to State and Central Gencos for lifting through rail-cum-road mode, till 31 May. Of this, 3.25 MT is the unlifted quantity of the earlier round of RCR offer and 5.5 MTs is the new offer.

However, the escalating power demand driven up by the post-pandemic economic buoyancy and hotter than normal summer seems to dwarf the upsurge in supplies.

The mercury levels soared above 41 degrees centigrade in Delhi, Punjab, Haryana, Uttar Pradesh, and Rajasthan. The Ministry of Earth Sciences has categorized heatwave status in these northern states. Maximum departure from normal temperature is ranging from 4.8 degrees to 6.2 degrees.

Coal India is currently trading at Rs199.45 up by Rs10.05 or 5.31% from its previous closing of Rs189.40 on the BSE. Its scrip has touched intraday high and low of Rs200.80 and Rs190.85 respectively.