Coal India Achieves Remarkable 12% YoY Growth in Coal Production in October 2023

State-owned coal giant, Coal India, announced impressive results for October 2023 and the cumulative period from April to October 2023. The company reported a robust 12% year-on-year increase in coal production, marking the end of October in FY24 on a high note. During this seven-month period, Coal India produced a staggering 394 million tonnes (MTs) of coal, which marked a substantial 42 MT increase from the previous year when they produced 352 MTs. This growth exceeded their annual target of 11%.

During the company's Foundation Day event on November 1st, PM Prasad, Chief of Coal India, highlighted their remarkable journey from an initial production of 79 MTs in 1975 to a staggering 703 MTs by the end of FY 2023. He expressed confidence in their pursuit of the challenging output target of 780 MTs for the current financial year.

For October 2023 alone, Coal India's production skyrocketed by 8 MTs, reaching 61 MTs, a remarkable 15% increase compared to the same period in 2022 when it stood at 53 MTs. Furthermore, in the first seven months of the current financial year, Coal India's supplies to the power sector soared to 346 MTs, indicating a substantial 15 MT increase from the 331 MTs delivered during the same period last year, showcasing a 4.5% growth. This also exceeded the progressive commitment of 341.3 MTs until the end of October.

Coal India is optimistic about surpassing its annual supply target of 610 MTs to the power sector. In October, a festive month with increased power demand, supplies to thermal plants surged by 11% to reach 50.8 MTs, compared to 45.8 MTs in October 2022. Notably, this increase was achieved despite adverse weather conditions, including heavy rains in CIL's subsidiary mines located in the eastern part of the country, including ECL, BCCL, CCL, and partly NCL, during the first week of October.

In terms of total coal off-take, Coal India recorded a remarkable 9.5% growth, reaching 422.3 MTs by the end of October in FY 2024. This figure represented a substantial 36.6 MT increase compared to the same period in the previous year, which stood at 385.7 MTs.

For October 2023, the total coal despatch was 61.6 MTs, marking an almost 8 MT increase. Overall supplies displayed an impressive 14.7% growth during this month, in contrast to the 53.7 MTs supplied in October 2022.

Among the eight core sectors of the country, coal production in September 2023 demonstrated the highest growth rate, reaching 16.1% year-on-year. Coal India played a significant role in contributing to this sector's growth. Additionally, Coal India's coal stock at their pitheads stood at 41 MTs by the end of October, which was nearly 14 MTs higher than the same period the previous year, ensuring a comfortable buffer to meet any potential increase in future demand.