CONSUMERS’ PAGE Present Coal Scenario: India’s total coal production has grown from 66.58 MT in April ’22 to 71.30 MT in May ‘22, registering a growth of 7%. Total coal production in FY 22-23 so far has increased by 31.5% compared to the same period in last fiscal. CIL’s production has grown by 3.9% on an m-o-m basis in May and over 30% compared to the same month last year. Overall coal despatch in the first two months has grown by 12.65% compared to the same period in FY 2021-22 while CIL’s despatch has increased by over 8.5%. Lion share of the coal is being despatched to Power Sector to cater to the soaring demand. So far in this fiscal, coal despatch to power sector has grown by 19.5% compared to the previous financial year. Along the industrial sectors, only despatched to Steel Sector has increased (26%) in FY 23 while other sectors have dipped significantly. CPP Sector has been most severely hit as supply of coal has dipped by nearly 32%.
Issues faced by both Power and NRS Consumers:
against expired FSAs etc. are pending since many months. Among all CIL subsidiaries, the amount of pending refund from SECL is the highest so far.
1. Submission for release of various forms of long-pending refunds from South Eastern Coalfields Limited (SECL) and MCL:
In case of strapped BGs consumers are unable to secure required credit limits from their Banks to carry out regular plant operations comfortably. As a result, huge amounts of funds of both Utilities and Industries are stuck with MCL.
Various forms of refunds from South-eastern Coalfields Limited (SECL) including refund of additional coal value advance, BGs related to financial coverage and performance security, pending credit notes on account of grade slippage, refund of security deposit
06 | CCAI Monthly Newsletter May 2022
Requests have been made to SECL, MCL and CIL to immediately start processing the long-pending refunds to the Power and Non-power sector consumers. Both SECL & MCL have started streamlining the refund procedure.
