Energy sector excellent dues to coal PSUs up 42% y-o-y in end-FY24

The cumulative excellent dues of the facility sector to Coal India (CIL) and Singareni Collieries Firm (SCCL), which account for over 90 per cent of India’s coal manufacturing, rose 42 per cent y-o-y to ₹24,392 crore on the finish of FY24.

The excellent dues payable by thermal energy vegetation (TPPs) to the mining behemoth CIL rose 13 per cent y-o-y to ₹15,715 crore in March 2024, whereas these of SCCL greater than doubled on an annual foundation final month to ₹8,677 crore. Nevertheless, on a month-to-month foundation, the whole excellent dues of PSU miners fell 14 per cent from the file ₹28,438.1 crore in February 2024. The dues of CIL and SCCL additionally fell 13 per cent and 16 per cent m-o-m, respectively.

Rising consumption

Within the This autumn FY24, the dues of coal miners have been on the upper facet on account of upper requirement of coal as India’s energy demand has been rising at round 7 per cent every year.

As an illustration, the excellent dues of TPPs rose 33 per cent to ₹27,228.18 crore in January 2024. Equally, throughout February, the dues had been even steeper at 40 per cent y-o-y at ₹28,438.10 crore. The dues on the finish of February 2024 had been at a file stage in comparison with earlier years.

Home coal consumption by TPPs rose 9 per cent y-o-y to nearly 74 million tonnes (mt) in March this yr. Throughout January and February as properly the consumption rose 7 per cent and 13 per cent on an annual foundation to 71.3 mt and 68.4 mt, respectively.

Coal-fired energy vegetation, with an put in capability of practically 211 gigawatts (GW), consumed 849.7 million tonnes (mt) of the crucial commodity in FY24, which is greater by 9.41 per cent y-o-y from 776.6 mt in FY23.

Manufacturing and dispatch additionally rose consistent with rising coal consumption. Coal manufacturing in This autumn FY24 rose 7.4 per cent y-o-y to 262.11 mt, whereas dispatch grew 7 per cent y-o-y to 220.47 mt throughout the identical interval.

Energy demand

Authorities and analysts anticipate energy demand to develop at 6-7 per cent y-o-y on the again of rising consumption from industries and households. The height energy demand in FY23 hit 240 GW in September 2023 and projections are that it’s going to hit 260 GW this summer time.

Retaining thermal energy vegetation properly stocked is crucial because the Indian Meteorological Division (IMD) expects excessive warmth situations throughout April to June with Central and Western India prone to face the worst influence. As of April 19, home coal-based energy vegetation had a inventory of 46.55 mt in opposition to a day by day requirement of round 2.7 mt.