The supply of fuel by state-owned CIL to the power sector registered an increase of 6.2 percent to 42.58 million tonnes in February.

The development assumes significance as Coal India Ltd (CIL), which accounts for over 80 percent of domestic coal output, has ample availability of dry stock.

In February 2019, CIL supplied 40.10 million tonnes (MT) to the power sector, according to the recent government data.

However, the dispatch of coal by CIL to the power sector in the April-February period of 2019-20 registered a decline of 5.8 percent to 419.70 MT, against 445.71 MT in the year-ago period, the data said.

On account of subdued demand of coal by the power sector in the wake of the lockdown imposed to contain the spread of coronavirus, Coal India Ltd is also mulling to divert the fuel supply to the other sectors like cement and sponge iron.

Coal Minister Pralhad Joshi recently asked states not to import coal and instead take supply from CIL, which has fossil fuel in abundance.

To spur coal demand hit by the ongoing lockdown, the government had recently announced a slew of measures like increased dry fuel supply for linkage consumers.

Joshi had also announced several relief measures for CIL consumers, including the power sector, in the wake of the situation arising from the pandemic.

The coal ministry also announced that no performance incentive shall be levied on power consumers if CIL supplies more than the upper limit of fuel supply agreement (FSA).

The company closed the financial year 2019-20 with coal production of 602.14 MT, against the target of 660 MT.

The public sector undertaking is targeting 710 MT of coal in the ongoing financial year.

First Published:Apr 20, 2020 3:45 PM IST