The cumulative outstanding dues of the power sector to Coal India (CIL) and Singareni Collieries Company (SCCL), which account for over 90 percent of India’s coal production, rose 42 percent y-o-y to ?24,392 crore at the end of FY24. The outstanding dues payable by thermal power plants (TPPs) to the mining behemoth CIL rose 13 percent y-o-y to ?15,715 crore in March 2024, while those of SCCL more than doubled on an annual basis last month to ?8,677 crore. However, every month, the total outstanding dues of PSU miners fell 14 percent from the record ?28,438.1 crore in February 2024. The dues of CIL and SCCL also fell 13 percent and 16 percent m-o-m, respectively.
In Q4 FY24, the dues of coal miners have been on the higher side on account of the higher requirements of coal as India’s power demand has been growing at around 7 percent per annum. The outstanding dues payable by thermal power plants (TPPs) to the mining behemoth CIL rose 13 percent y-o-y to ?15,715 crore in March 2024, while those of SCCL more than doubled on an annual basis last month to ?8,677 crore. However, every month, the total outstanding dues of PSU miners fell 14 percent from the record ?28,438.1 crore in February 2024. The dues of CIL and SCCL also fell 13 percent and 16 percent m-o-m, respectively.
In Q4 FY24, the dues of coal miners have been on the higher side on account of the higher requirements of coal as India’s power demand has been growing at around 7 percent per annum.
For instance, the outstanding dues of TPPs rose 33 percent to ?27,228.18 crore in January 2024. Similarly, during February, the dues were even steeper at 40 percent y-o-y at ?28,438.10 crore. The dues at the end of February 2024 were at a record level compared to previous years.
Domestic coal consumption by TPPs rose 9 percent y-o-y to almost 74 million tonnes (mt) in March this year. During January and February as well consumption rose 7 percent and 13 percent on an annual basis to 71.3 mt and 68.4 mt, respectively.
Coal-fired power plants, with an installed capacity of nearly 211 gigawatts (GW), consumed 849.7 million tonnes (mt) of the critical commodity in FY24, which is higher by 9.41 percent y-o-y from 776.6 mt in FY23.
Production and dispatch also rose in line with rising coal consumption. Coal production in Q4 FY24 rose 7.4 percent y-o-y to 262.11 mt, while dispatch grew 7 percent y-o-y to 220.47 mt during the same period.
Government and analysts expect power demand to grow at 6-7 percent y-o-y on the back of rising consumption from industries and households. The peak power demand in FY23 hit 240 GW in September 2023 and projections are that it will hit 260 GW this summer.
Keeping thermal power plants well stocked is critical as the Indian Meteorological Department (IMD) expects extreme heat conditions from April to June with Central and Western India likely to face the worst impact. As of April 19, domestic coal-based power plants had a stock of 46.55 mt against a daily requirement of around 2.7 mt.