CIL urges power producers to substitute imports with domestic coal

In order to further reduce use of imported coal by power producers, state-run miner Coal India Ltd (CIL) on Monday urged power utilities, which are importing the fuel for blending, to avail higher grade of coal from its subsidiaries as a mean of import substitution. According to the miner, it is offering state power generation companies, which are major importers of coal, 4.5 million tonnes (mt) of high GCV (gross calorific value) coal from Eastern Coalfields Ltd (ECL).

"The miner has also created an exclusive window of auction called aSpecial Forward e-Auction` for power sector to enable the plants not having FSAs (fuel supply agreements) with CIL, to secure domestic coal. It allocated 27 mt of coal through this window in 2018-19," an official said.

According to it, coal imports by power sector were 79.44 mt in 2013-14, mainly on account of "less availability of domestic coal". It claimed that "outcome-oriented" production plans, daily monitoring of production and despatch and other concerted efforts were "put in place" to meet requirements of power sector through domestic coal.

"The CIL production had been increased by 145 mt during the last 5 years in comparison to increase of 59 mt only, during the preceding 5 years. This helped coal based power generation grow by 7.6 per cent during the last 5 years," the miner said. AHowever, the coal import by power sector has reduced by about 17 mt from 79.44 mt in 2013-14 to 61.65 MT in 2018-19.

CIL`s despatch to power sector had increased by 134 mt between the financial year 2013-14 to FY 2018-19.