State-run miner Coal India Ltd (CIL) posted a steep surge of 29% in coal production during Q1FY’23, thereby boosting the government’s efforts of meeting the country’s growing energy needs.
The miner produced 159.75 million tonnes (mnt) of coal during Q1 as against 124 mnt in Q1FY’22.
Notably, this is the highest output recorded in the first quarter of a fiscal – a period during which CIL usually tends to lower production in view of surplus inventory available at mines.
However, in order to keep pace with soaring power demand, the company has recorded production in excess of 50 mnt in each of the first three months of FY’23. In contrast, the production mark of 50 mnt was first touched in November of last fiscal.
The increase in production is significant in view of inadequate stock levels during monsoons where mining activities are generally affected.
Notably, the company liquidated around 18 mnt coal in the first quarter as stockpiles at mines fell from 60.71 mnt in the beginning of FY’23 to 42.67 mnt in end June.
Dispatches climb 11%
CIL’s coal dispatches increased by 11% y-o-y to 177.6 mnt in Q1 compared to 160.4 mnt in Q1FY’22.
There was no immediate impact of the monsoon on coal supplies as the company dispatched coal at an average of 2.02 mnt/day in June, which was higher than 1.98 mnt/day in May.
As a result, coal inventories at power plants improved to 26.52 mnt as on 30 June, recovering from the lows seen in April.
CIL is also in the process of finalising import tenders that were floated on behalf of power plants. This would help it to keep imports on tab for additional supplies over and above supplies from indigenous sources.
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