State-run miner Coal India Ltd (CIL) maintained the uptick in coal production by recording a growth of 9% y-o-y to 46.22 million tonnes (mnt) in August, 2022 as against 42.6 mnt in August, 2021.
However, increased rainfall across the mining areas of its subsidiaries Western Coalfields (WCL) and Mahanadi Coalfields (MCL) impacted mining activities as the y-o-y growth in production for August fell to the lowest this fiscal.
Notably, WCL, on an average, received 54% more rainfall since 1 June, 2022 till August-end compared to the same period last year, while the rainfall was 57% more in the areas of MCL.
Subsidiary-wise coal production
Source: CIL | Quantity in mnt
The impact was more pronounced in the case of WCL as it was the only subsidiary to register a decline in y-o-y production during August. WCL’s production was down 13% to 2.45 mnt. Yet, the output was 48% higher m-o-m as compared to 1.65 mnt in July, 2022.
Higher dispatches help revive power plants
CIL attained coal dispatches in excess of 50 mnt for the fifth straight month this fiscal. The miner recorded a growth of 5% in dispatches to 51.13 mnt in August, 2022 as against 48.73 mnt in August, 2021.
This performance holds significance as it helped the power plants to tide over a difficult monsoon period, thereby negating any concerns of coal shortage.
As a result of higher supplies, the power plants based on domestic coal are now sitting comfortably with an adequate inventory of 26.7 mnt as on 31 August, 2022. This contrasts sharply with the previous year’s scenario when the inventory levels had plunged to 12.76 mnt in August-end.
In April-August 2022, CIL’s supplies to the power sector were at 243.3 mnt, or 108% of its annual action plan target of 225.4 mnt.
Overall, supplies in the period were at 283.1 mnt, up 9% y-o-y against 259.5 mnt in the corresponding period last year.
Leave a Reply