CIL's coal allocation for non-power sector rises 3-fold to 6.66 MT in 1st qtr
New Delhi: Coal India's fuel allocation under the exclusive e-auction scheme for the non-power sector increased three-fold to 6.66 million tonne (MT) in April-June period of the ongoing financial year.
This growth comes amid Coal India (CIL) looking to tap the non-power sector for consumption of its coal in the wake of a slump in demand for the dry fuel.
CIL had allocated 2.20 MT of the dry fuel to the sector under the scheme in April-June period of the last financial year, as per latest government data.
However, the coal quantity allocated by the maharatna firm under the scheme in the last month dropped to 0.56 MT, from one million tonne allocated in June 2019-20, the data showed.
For the entire fiscal (2019-20), the PSU's coal allocation under the scheme dropped to 8.03 MT from 11.36 MT in the previous year, as per the data.
The scheme was launched in 2015-16 to make coal available to non-power consumers, including captive power plants.
CIL, which has sufficient stock of coal, is grappling with weak demand for the dry fuel.
The power sector is one of the major consumers of Coal India. The company, which is reeling under the pandemic stress causing adverse impact on demand and supply of the dry fuel, had this month said the situation will remain uncertain in July-September as some states are resorting to fresh lockdowns.
The state-owned miner produced 18.05 MT of coal during July 1-16 against 19.61 MT produced in the same period last year. The coal production in some of the major mines is still affected due to high coal stock and less offtake, the PSU had said.