Higher CIL supplies to help plants cut imports
Imports are expected to fall further in the weeks ahead a local supply increases. Coal India has decided to supply around additional 70-75 tonnes a year to these companies. A large number of inland plants switch to imported fuel when domestic supply dwindles. Domestic coal, which is 25 to 30 per cent cheaper, reduces generation cost, which is passed on to consumers.
"Coal production is on the rise over the last several weeks and stocks at pitheads are at comfortable levels allowing us to supply increased quantities to generators relying on imported coal," said a senior Coal India executive.