India’s coal production increased by 12% y-o-y to 58 million tonnes (mnt) in September 2022. However, m-o-m production remained stable.
This growth was due to all the subsidiaries of Coal India Ltd. (CIL), Singareni Collieries Company Ltd. (SCCL) and the captive and other miners recording an increase in production.
SCCL and WCL, a subsidiary of CIL, had reported y-o-y drop in coal production in August as mining was impacted by heavy rains. But in September production by both the mining entities increased on a monthly as well as yearly basis.
CIL’s production stood at 45.67 mnt, up 12.35% y-o-y. SCCL and the captive and other miners recorded an increase in output by 8.4% and 12.4% , respectively, to 4.9 mnt and 7.3 mnt.
Coking coal production
India’s coking coal production in September rose to 24% y-o-y to 4.28 mnt. The growth in production was driven by the 27% y-o-y increase in coking coal output by CIL.
Bharat Coking Coal Limited (BCCL), CIL’s leading coking coal producing subsidiary, achieved growth rate of 29 % y-o-y, registering total production at 2.6 mnt.
Output of CIL subsidiaries
More than 30% of CIL’s coal production came from Mahanadi Coalfields Limited (MCL), which registered y-o-y growth of 17.5% in September, pushing coal output to 14.27 mnt as against 12.2 mnt in September 2021.
- Northern Coalfields Limited’s (NCL) coal production stood at 10 mnt, followed by the South Eastern Coalfields Limited (SECL) at 9 mnt.
- Eastern Coalfields (ECL) and Central Coalfields (CCL) recorded output at rangebound levels.
- BCCL, NCL and MCL achieved more than 95% of their set production targets for the month.
Outlook
India’s coal production till September in FY’23 have grown by around 21% y-o-y to 382 mnt. However, demand, especially from the domestic power sector, often outpaces supply.
CIL, SCCL and other captive as well as commercial miners have the mandate to ramp up output even as coal supplies to the non-power sector remain a matter of grave concern.
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