Coal India (CIL) jumped 5.57% to Rs 199.95 after the company said that it has raised the supplies to thermal power stations by 14.2% during the first half of April 2022 as compared to same period last April.
CIL's supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs supplied in the similar period during April 2021.
The company had accelerated its production to 26.4 MTs during the first half of April 2022, registering 27% year-on-year growth. The company is heading for its highest April production ever. Output expansion in volume terms was 5.7 MTs.
To tide over the intense demand, CIL has made available additional 8.75 MTs of coal to State and Central generation companies (Gencos) for lifting through rail-cum-road (RCR) mode, till May 31. Of this, 3.25 MT is the unlifted quantity of the earlier round of RCR offer and 5.5 MTs is the new offer.
However, the escalating power demand, driven up by the post-pandemic economic buoyancy and hotter than normal summer, seems to dwarf the upsurge in supplies.
The country's total power generation was 9.5% higher, at an average of 4.53 billion units (BU), till 15 April 2022 over the same period last year. The increase was 400 million units per day against the average generation of 4.13 BU for the comparative period.
The international coal prices are on the boil for past many months showing no signs of cooling off. This turns the spotlight on domestic coal producers with CIL at the center of it.
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CIL is coordinating with the ministries of coal, power, and railways to build up stocks at power plants in a synergic effort. The company's supplies are on the rise so far. The pressure would ease if the imported coal-based power plants meet their requisite imports set for the year.
Coal India is a coal mining company engaged in the production and sale of coal. As of 31 December 2021, the Government of India held a 66.13% stake while Life Insurance Corporation (LIC) of India held an 11.01% stake in the company.
On a consolidated basis, the PSU coal major's net profit jumped 47.7% to Rs 4,556.54 crore on a 19.7% increase in net sales to Rs 25,990.97 crore in Q3 FY22 over Q3 FY21.
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