Coal supply by CIL to captive power crops, cement sector drops in May


The coal dispatch by state-owned CIL to captive power crops and sectors like cement registered a decline in May as in contrast to the year-ago month.

While the gas supply by Coal India Ltd (CIL) to captive power crops dropped 39.74 per cent in May 2022 over the year-ago interval, dispatch to the declined 16.74 per cent, in accordance to newest authorities knowledge.

The by the PSU to the sponge sector additionally dropped 8.74 per cent year-on-year in May.

However, supply to the metal sector went up by 67.83 per cent and to the power sector elevated by 19.48 per cent final month, over May 2021.

In the wake of the quick supply of coal to the non-regulated sector, business our bodies had earlier sought Prime Minister Narendra Modi’s intervention in the matter, stating that industries are compelled to buy power from exchanges at increased charges due to elevated demand.

Reeling below the disaster on account of continued coal scarcity, a serious phase of the manufacturing sector, MSMEs and captive power plant-based business had collectively submitted a illustration to the prime minister via a bunch of 10 business associations.

According to the illustration, dispatches of coal to sectors like captive power crops (CPPs), metal, cement and sponge iron have been lowered by up to 32 per cent in present fiscal 12 months.

The state of affairs has aggravated to a degree which will compel many industries to reduce manufacturing or pressure closure. Such impediments in coal procurement could adversely affect the manufacturing sector which might in flip trickle down to the widespread individuals of the nation.

Crude Oil & Coal Exports 2020

If an equitable supply of coal between power and non-power sectors had been achieved throughout January-March interval, the coal inventory state of affairs on the power-end throughout sectors would have been a lot improved forward of the summer season, and the load on power utilities might have been lowered by technology from captive power plant items, the illustration had identified.

(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)

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