India: CIL’s coal production down 2% y-o-y in H1 FY ’21

Coal India Ltd (CIL), country’s largest coal producer, has reported a decline of in coal output during the first six months of FY ’21, as a result of the turbulent first quarter where output was curtailed in view of the excessive stock.

Production by the company decreased 2% y-o-y to 236.05 mn t coal in Apr-Sep ’20 as against 240.93 mn t in Apr-Sep ’19.

However, showing signs of recovery, the output increased 11% y-o-y to 115.05 mn t in the second quarter, which helped in reducing the large deficit in total production.

In particular, robust performance was seen during Sep ’20 where coal production of 40.51 mn t witnessed an uptick after a gap of three months, rising 9% m-o-m from 37.17 mn t in Aug ’20. Besides, the volume was 32% higher on the year from 30.78 mn t in Sep ’19, thereby recording a two-digit y-o-y growth for the first time in current fiscal.

Subsidiary-wise production:

MCL emerged as the largest coal producing subsidiary with an output of 63.86 mn t in the six month period, which grew 13% y-o-y from 56.51 mn t in Apr-Sep ’19.

NCL was another subsidiary to have noted y-o-y rise in production, and also fetched highest percentage in term of target attained during the period.

Quantity in mn t | * NEC has temporarily suspended operations since 3 Jun ’20

CIL has managed to liquidate around 19 mn t of coal inventories since the beginning of the fiscal, which is currently assessed at 56.98 mn t at the end of Sep ’20. The company would be expecting better performance in ensuing months to meet its production target, for which a considerable growth in coal demand is still awaited.