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Coal India’s coal production continues to grow in January

Steel Mint Insights

State-run miner Coal India Ltd (CIL) continued its robust performance in terms of production in January 2024. CIL’s production rose by 9.1% y-o-y to 78.4 million tonnes (mnt) in January 2024 as against 71.9 mnt in January 2023. Notably, the company’s total production in financial year 2024 (FY’24) (April- January) recorded at 610.3 mnt, rise of 10.8% as against 550.9 mnt in FY’23 (April-January).

MCL achieved the highest coal output at 20.6 mnt in January 2024, up by around 8% as compared to 19 mnt in January 2024, followed by SECL at 19.7 mnt, edged up y-o-y. ECL produced 5.2 mnt in January 2024, surged by nearly 56% as against 3.3 mnt in January 2023.

CIL dispatches up by 5% in January 2024

During the month, coal dispatches posted rise of 4.8% y-o-y to 67.6 mnt in January 2024 as compared with 64.4 mnt in January 2023. The cumulative dispatch in April-January 2024 recorded at 619.5 mnt as against 572.3 mnt in the same period last year.

MCL’s coal dispatches stood at 17.8 mnt in January 2024, picked up by 2.8% as compared to 17.3 mnt in January 2023, followed by SECL at 16.3 mnt, up by 4% as against 15.7 mnt in January 2023. The total coal dispatch at NCL was recorded at 11.2 mnt for January 2024, down 3% as against 11.6 mnt a year ago.

CIL to increase production from under ground mines

CIL has targeted to increase its production of coal from underground (UG) mines to 31 mnt in the current financial year, FY24. CIL aims to enhance its coal output from UG mines to 31 mnt in FY 24 and also anticipates to increase it to 42 mnt in FY25. UG mining entails higher costs compared to open cast mining. However, with growing mechanisation it may be possible to extract more fuel from deposits and it is more environment friendly.

India’s electricity demand is anticipated to double by 2030, with coal demand projected to be in the range of 1.5-1.8 billion tonnes by 2030. This underscores the essential reliance on coal to meet this increasing demand, as stated by Coal Minister Pralhad Joshi. The Indian government aims to establish a domestic thermal coal stock ranging from 1.8 to 2.5 billion tonnes by the year 2030-32.

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