Domestic coal supply remains significantly short of the domestic demand on the back of strong recovery in power demand and a healthy growth in production levels from non-regulated consuming sectors like cement, aluminium, and steel, rating agency Icra said Monday. Lower generation of hydropower in the current fiscal is also increasing the coal demand, it said in its report.
“The Coal India (CIL) has achieved a double-digit production growth of 10.6 per cent during the first six months of the current fiscal. However, production ramp-ups are unable to keep pace with rising demand and the domestic coal supply remains significantly short of the domestic demand,” it said.
Icra estimated that as on September 30, 22 non-pithead power plants had less than seven days of coal stock left. During the just concluded monsoon season, domestic coal production growth slowed down to 3.8 and 3.2 per cent in September and August, respectively, against 10.6 per cent in July and 13.2 per cent in June, it said. Read more
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