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

0
19
Coal supply by CIL to captive power plants, cement sector drops in May

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

While the fuel supply by Coal India Ltd (CIL) to captive power plants dropped 39.74 per cent in May 2022 over the year-ago period, dispatch to the cement sector declined 16.74 per cent, according to latest government data.

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

However, supply to the steel sector went up by 67.83 per cent and to the power sector increased by 19.48 per cent last month, over May 2021.

In the wake of the short supply of coal to the non-regulated sector, industry bodies had earlier sought Prime Minister Narendra Modi’s intervention in the matter, stating that industries are compelled to purchase power from exchanges at higher rates due to increased demand.

Reeling under the crisis on account of continued coal shortage, a major segment of the manufacturing sector, MSMEs and captive power plant-based industry had jointly submitted a representation to the prime minister through a group of 10 industry associations.

According to the representation, dispatches of coal to sectors like captive power plants (CPPs), steel, cement and sponge iron have been reduced by up to 32 per cent in current fiscal year.

The situation has aggravated to a level that may compel many industries to cut production or force closure. Such impediments in coal procurement may adversely impact the manufacturing sector which would in turn trickle down to the common people of the country.

If an equitable supply of coal between power and non-power sectors had been achieved during January-March period, the coal stock situation at the power-end across sectors would have been much improved ahead of the summer, and the load on power utilities could have been reduced by generation from captive power plant units, the representation had pointed out.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,



Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here