State-run miner Coal India Ltd. (CIL) has made a strong start to FY 2022-23 (FY’23), posting production in excess of 50 million tonnes (mnt) for the second month in a row.
The company’s production increased 30% y-o-y to 54.72 mnt in May’22 compared to 42.08 mnt in the year-ago month. Output saw a modest rise on the month as against 53.47 mnt in Apr’22.
Production volume was curtailed compared to the highs in Mar in view of excess stock availability. However, volumes were ramped up on y-o-y basis to keep pace with robust demand from the power sector.
Notably, the rise in production was seen across CIL subsidiaries during the period, with Mahanadi Coalfields (MCL) emerging as the top producer.
Subsidiary-wise coal production
Source: CIL | Quantity in mnt
Recovery in coal supplies
The gap between requirement and supply of domestic coal has impacted operations of coal-based power plants. As a result, the government has asked the plants to procure imported coal to cater to the surplus demand.
Stepping up supplies, CIL dispatched 61.24 mnt coal during May, recording an increase of 11% y-o-y from 55.14 mnt in May last year. Dispatches rose 6% on a monthly basis.
In fact, the average dispatch recorded at 1.98 mnt/day in May surged on a daily basis which has been on a downtrend for the past two months.
Supplies are expected to remain elevated in the short-term as CIL is likely to make all-out efforts to ensure an adequate inventory level at power plants before the onset of monsoons.
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