Coal Production in India Surges 12.73%, Stocks Reach 71.35 Million Tonnes
- Promising Growth and Strategies to Maintain Coal Supply during festival Season
- Coal Ministry Ensures Close Coordination with Railways & Power Sector
TFP Bureau, New Delhi; Oct 23, 2023: India has seen a remarkable surge in coal production, marking a 12.73% increase during the current financial year up to October 21, 2023, compared to the same period last year. This substantial growth is attributed to a diverse array of sources, with Coal India Ltd (CIL) contributing an 11.80% rise, SCCL boasting an 8.45% growth, and captive & commercial mines experiencing a substantial 20.50% increase.
As of October 21, 2023, the total coal stock in India has reached an impressive 71.35 million tonnes (MT), inclusive of coal located at the mine pithead, in transit, and at thermal power plants. This figure represents a notable 18.05% increase compared to the corresponding period last year when the total stock stood at 60.44 MT.
An interesting trend has emerged regarding coal imports, which have witnessed a substantial reduction. During this period, coal imports amounted to 13.5 MT, marking a 35% decrease compared to 20.8 MT imported during the same period last year. This shift can be attributed to a lower requirement for coal blending.
Following a period of persistent rainfall in coal-producing states during early October, coal production has rapidly increased over the last ten days. An astounding total production of over 26.57 lakh tonnes per day has been recorded during this period, exceeding average expectations. Furthermore, coal stocks at thermal power plants have seen a reversal in the last week, with daily coal supply now surpassing daily consumption and stocks beginning to accumulate.
The seasonality of coal production and transportation indicates lower figures during the first half of the year, predominantly during the summer and monsoon seasons. However, coal stocks at pitheads and thermal power plants tend to deplete in the first half and accumulate during the second half of the year when favorable production conditions return post-monsoon. This trend results in higher supply than consumption in the latter half of the year, leading to coal stockpile growth at power plants and mine pitheads.
Despite a high demand for power, the Ministry of Coal has ensured that ample coal supplies are maintained across all thermal power plants throughout India.
In preparation for the upcoming festival season, the Ministry of Coal has devised a strategy to guarantee regular coal production by offering increased wages to contractual workers. This initiative has led to CIL producing 21 lakh tonnes of coal on Maha Astmi, equivalent to production on any typical day.
The Ministry of Coal has set ambitious goals for coal stockpiles, aiming for 40 million tonnes at pithead plants of thermal power and more than 75 million tonnes at mine ends by March 31, 2024.
The Ministry of Coal remains steadfast in its commitment to ensuring an adequate coal supply and maintains close coordination with the Ministries of Railways and Power to secure India’s energy requirements.
