State-run miner Coal India Ltd (CIL) has registered a y-o-y growth of 13% in coal production to 60.7 million tonnes (mnt) in November 2022 as against 53.8 mnt in November 2021. The output was also 15% higher m-o-m from 52.94 mnt in October, 2022.
The company has maintained a steady pace for production since the beginning of FY23 amidst strong power demand. On the top of this, favourable working conditions post-monsoon provided a leeway to further accelerate productivity in H2.
Notably, the production mark of 60-mnt was attained early this fiscal (in November). This milestone was first recorded in December last fiscal.
Production exceeds dispatches
The company’s production in November was more than its dispatches of 59.32 mnt for the first time this fiscal. This phenomenon occurred two months earlier than the previous fiscal.
It is important to note here that the company lowers production in the first half to liquidate the surplus inventory accumulated at the mines. This is the period when impetus is provided to coal dispatches.
Nonetheless, the need for higher dispatches continued in H2 in the past few years driven by the supply concerns of power plants.
However, production outpaced dispatches in November at a time there was an ease in demand from the power sector due to build-up of adequate inventory levels.
Race towards 700 mnt target
CIL is striding towards its set target of 700 mnt of coal output for FY23.
In a latest development, the company breached the 400-mnt production mark in the quickest time since its inception. The milestone was attained on 24 November in the ongoing fiscal, 31 days ahead compared to 25 December of last year.
At the beginning of FY23, the asking rate for achieving the production target was 12.41% which has been brought down to 6.7% as a result of the robust performance.
During April-November 2022, CIL’s subsidiary – Mahanadi Coalfields Ltd (MCL) – was the highest coal producer with an output of 120 mnt while South Eastern Coalfields (SECL) occupied the second spot. All the subsidiary companies have registered a double-digit growth in this period.
CIL Subsidiary-wise Coal Production
Quantity in mnt | Mining operation at NEC was suspended in FY22
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