The move is likely to translate into a reduction of around Rs 12 paisa per unit in their cost of electricity supply as coal-based capacity accounts for nearly 70% of total generation at an all-India level, according to ICRA Ltd.
Production from captive and commercial mines in April stood at 14.51 MT, a 26.6 percent rise from 11.46 MT seen in April 2024.
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About 1,490 shares advanced, 2,018 shares declined and 126 shares remained unchanged on August 18.
Land was the major expenditure head at Rs 1,311 crore, accounting for 28 percent of the total capex spend in the April-July period.
CIL's total expenses in the first quarter increased 11.5 percent to Rs 26,745.68 crore from Rs 23,985.31 crore in the corresponding quarter of the previous fiscal.
Two sources with knowledge of the matter said a view emerging in the power ministry is that the coal ministry should take the complete responsibility of imports of the dry fuel to tide over the shortage.
A meeting of the board of directors to this effect was held on March 10, 2022, Coal India Ltd (CIL) said in a regulatory filing.
The mandated target for expenditure on CSR by Coal India (CIL) during the last three years was Rs 1,284 crore.
The Centre is also planning to introduce a coal exchange after taking into account consumer feedback. It had appointed Crisil as a consultant for the proposed exchange, and a report in this regard is expected in the next six-nine months.
Coal India’s capital expenditure was at Rs 13,284 crore in FY’21.
The miner’s production for the current fiscal stood at 614.4 million tonnes as of March 28.
New high comes several days before the fiscal’s end
CIL’s capex spend during the referred period marks 86.3 per cent of the progressive target achievement.
"It is a temporary prioritisation of supplies to power plants till stabilisation in stocks is restored," a company official said.
Asia's third-largest economy is facing large-scale outages as several power plants have low coal inventories amid a sharp spike in global energy prices.
The coal ministry, in a letter dated September 23, asked the miner to seek approval from its board for divestment of 10 per cent of paid-up capital in CMPDIL and subsequently listing on the bourses to tap the unlocked value of the subsidiary.
The Centre has also asked the state-owned miner to diversify its business and explore prospects in areas like electric vehicles and charging pods.
Coal India has informally discussed the matter with board members and most of them have acknowledged the need to hike prices of coal.
In the first coal mining auctions for the private sector without restrictions on end-use of the fuel conducted last year, there were no bids for nearly half of the 38 mines.
The world’s largest miner by production would not be exporting coal directly, but said it has lifted an export embargo allowing buyers to export coal purchased through spot and special e-auctions.
The government has instructed the public sector companies to increase their capital expenses to boost the economy which was hit by the COVID-19 pandemic, the CIL official said.
The quarter-on-quarter output increase was a whopping 41.8 MT, clocking a robust growth of 36.4 percent.