Coal India Ltd (CIL), country’s largest coal producer has reported an increase of 10% in monthly coal production during Nov ’20 as the company looks upon raising the output level after witnessing a dismal first quarter period.
Coal production in Nov ’20 stood 51.7 mn t against 46.84 mn t noted in Oct ’19. Incidentally, the company had also beached the 50 mn t mark for the first time in previous fiscal during November itself.
Production also increased 3% y-o-y from 50 mn t in Nov ’19, but had failed to maintain a double-digit growth as seen in the past two months.
However, making a strong comeback from the slow start to the fiscal, total production in the first 8 months of FY ’21 (Apr-Nov ’20) has reached 334.5 mn t, slightly up 1% y-o-y compared with 330.4 mn t recorded in the corresponding period of previous fiscal.
Continual uptick in coal dispatch:
Gradual rise in coal-fired generation has helped CIL to rake-up higher coal supplies as it extended its growth on the monthly basis. Dispatch during Nov ’20 increased 2% m-o-m to 51.3 mn t compared with 50.53 mn t in Oct ’20, which was also 8% higher on the year from 47.5 mn t in Nov ’19.
Still, total dispatch of 357.2 mn t during the first 8 months is lagging behind the previous fiscal’s sum of 363.9 mn t recorded in the same period.
The month of November has brought upon an absolute rise in coal stock level which has gone up to 53.51 mn t, and this could prove a hindrance to the company’s plan towards attaining its production target given the fact that coal supplies are expected to come down on account of sluggish power demand during winter season.
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