NEW DELHI: High coal inventory at power stations may continue to keep the domestic production and offtake levels under check in the near term, said India Ratings and Research (Ind-Ra).
Accordingly, users may resort to domestic coal over imported ones given the elevated import prices, especially for non-coking coal, supporting offtake.
“The proposition to allow Coal India Limited (CIL) to export surplus coal may offer newer offloading opportunities, subject to India’s competitiveness in the international market,”.
Notably, coal offtake improved 1.8 per cent month on month (mom) in January 2021 to 58.9MT, driven by a 4.4 per cent mom higher domestic power demand.
However, the offtake was lower 4.5 per cent year on year (yoy) due to the high inventory levels at power stations.
