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Coal India’s fuel allocation for non-power sector rises almost 6-fold in H1

State-owned Coal India Ltd’s fuel allocation under the exclusive e-auction scheme for the non-power sector rose almost six-folds to 13.44 million tonnes (MT) in April-September this fiscal.

Coal India Ltd (CIL) had allocated 2.31 MT of dry fuel to the sector under the scheme in the corresponding period of the previous fiscal, according to the latest government data.

This growth comes amid CIL looking to tap the non-power sector to consume its coal.

However, there was no allocation of coal by the PSU under the scheme last month, 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 FY’19.

In a bid to push the demand for dry fuel, the Centre had earlier asked generating companies, including NTPC, Tata Power, Reliance Power, to reduce the import of dry fuel for blending purposes and replace it with domestic coal.

Prime Minister Narendra Modi had also earlier asked to target thermal coal import substitution, particularly when a huge coal stock inventory is available in the country this year.

In a bid to give a boost to coal demand hit by the lockdown, the government had earlier announced several relief measures for CIL consumers, including the power sector.

The ministry had also approved relaxation in quantity of coal for linkage consumers.

CIL accounts for over 80 per cent of domestic coal output.
Source: PTI

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