Indian coal production has breached the 700 MnT mark for the first time during FY19. Total coal output was noted at 730.354 MnT, up 8.1% Y-o-Y from 675.4 MnT in FY18, as per the data provided by Coal Ministry.
The ministry had applauded sustained program of investment and greater thrust on application of modern technologies, for higher coal production during the fiscal.
Mining giant Coal India Ltd (CIL) accounting for lion’s share in the total volume, had contributed 606.9 MnT coal in FY19, noting a growth of 7% Y-o-Y from 567.36 MnT in FY18.
Singareni Collieries Company Limited (SCCL), the main source for coal supply to the southern region, had produced 64.4 MnT coal during FY19. Company’s production had increased 3.9% Y-o-Y from 62.01 MnT in FY18.
Remaining quantity of 59.05 MnT was procured from captive and other non-captive mines. However, the report has not provided a break-up of individual output from these mines.
It is to be noted that coal production of Captive Mines had already surpassed its annual target of 40 MnT set for FY19, as stated by previous report of Coal Ministry. During the first 11 months of FY19 (Apr’18-Feb’19), coal production was recorded at 44.41 MnT. While production from other non-captive blocks was 8.4 MnT in the 11-month period.
Indian Coal Imports:
Indian coal imports continued its rising trend by posting 13% Y-o-Y growth during FY19. As per the provisional data provided by Coal Ministry, Indian coal imports (excluding coke) were recorded at 235.24 MnT in FY19 as against 208.27 MnT in FY18.
As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs based on their commercial prudence. Consequently, end users and traders are engaged in coal purchasing from foreign markets to balance the shortfall in domestic supply.
Imports of Coking Coal increased 10% Y-o-Y to 51.84 MnT in FY19 against 47 MnT in FY19. Coking coal is being imported by Steel Authority of India Limited (SAIL) and other Steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality.
Non-Coking coal imports were marked 14% higher on the year at 183.4 MnT in FY19. Coal based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers and coal traders are the major importers of non-coking coal.
While Coke majorly imported by Pig-Iron manufacturers and Iron & steel sector consumers using mini-blast furnace, were noted 4.93 MnT in FY19.
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