Coal movement through rail mode has surpassed 2019 levels. Coal loading stood at 131.4 million tonnes (mt) in the current financial year till June 15, according to the data compiled by the Ministry of Railways. This is a little over 1 per cent increase over the same period in 2019.
As power plants rush to hoard coal ahead of peak summer demand, coal production and its movement has also increased. The peak demand season will also coincide with the opening up of industrial and commercial activities across states which were under curfew due to the second wave of the Covid-19 pandemic.
The railway coal loading, however, had dropped 30 per cent to 90.5 mt because of 61 days of the national lockdown during the April 1-June 15 period last year. Coal loading in the April 1-June 15 period this year shows a 45-per cent increase over last year because of this base effect.
Coal India’s (CIL’s) production in April-May 2019 was 91.88 mt, while offtake was 104 mt. Though its production at 84 mt and offtake at 109 mt in 2021 are still lower than the 2019 levels, this fall does not reflect in railway loading since the Indian Railways carries coal for other customers as well.
CIL, however, increased its production marginally by 2.6 per cent in April-May this year and offtake by 38 per cent over 2020.
Along with this, CIL witnessed a 52.5 per cent increase in its e-auction coal sales in the first two months of the current financial year, over the corresponding period a year before.
The increased demand for coal is linked to the summer demand from the power sector, which is preparing for a season of heightened electricity demand.
Source : Business Standard
