Categories: Business

coal supply by coal india to power sector dip by 22 percent in april


Coal demand fall due to covid 19

new Delhi. Public sector Coal India supplied 319 million tonnes of coal to the power sector in April this year, which is 22 per cent lower than the same month last year. The ongoing 'lockdown' to prevent the corona virus epidemic has resulted in reduced coal supplies amid low demand for fuel. According to a report by the Ministry of Coal, Coal India supplied 4.09 million tonnes of coal in April last year. Coal India, the world's largest coal producer, is the main supplier of fuel to the power sector in the country. Public sector Singareni Collieries Company Ltd.'s coal supply to the power sector also declined by 38.6 per cent to 28.6 lakh tonnes in April. A year ago, in the same month, the company shifted power sector to 46.

6 lakh tons of coal was supplied.

The power sector is a major consumer of coal and the power demand has come down due to the 'lockdown' stagnating economic activity, which has an impact on fuel demand. Meanwhile, Coal India has focused its attention on removing soil and stones from the top layer of the mines. This will enable Coal India to accelerate production with increasing demand and ensure supply of coal to customers in a very short time. It is noteworthy that in open cost mines, the soil and stones are removed from the top with the help of coal. 95% of Coal India's production comes from 171 'open cast' mines.

According to a report by the Central Electricity Authority (CEA), as on 30 April 2020, there were 5489 million tonnes of coal reserves in the power stations, which is sufficient to meet the requirements of 31 days. Coal India is in constant touch with its customers, especially in the southern states, and is encouraging them to use domestic fuel instead of imported coal. Coal India, which accounts for more than 80 percent of the total supply, has set a target of producing one billion tons of coal by 2023-24.

This post was published on May 28, 2020 3:30 pm

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