April coal output rises 7.7%; power plants stocked with coal

The Indian company announced on May 2 that its coal production rose 7.7 percent in April 2023, adding that supplies to users surged.

Global coal miner has logged a 31 percent increase in overburden removal (OBR) from year-to-year (YoY). In the upcoming monsoon months, this will help boost production. Supplies to non-regulated sector (NRS) increased 44 percent YoY. According to the company, it is "firing on all cylinders" to prepare for the hot summer.

Coal power plants in the country have been directed to run at full capacity. 70 percent of India's energy comes from these plants. To meet demand, availability is being shored up.

"Sustaining the growth trend of previous fiscal, CIL excavated 169.5 million cubic meters of OB in April, achieving 109 per cent target. Compared to 129.6 million cubic meters in April 2022, the growth was 31 percent," the company added.

As of April, CIL produced 57.6 million tons of coal. Over a high base of 53.5 million tonnes, the volume increased by 4.1 million tonnes. Other than Eastern Coalfield (ECL), all subsidiaries of CIL have registered the highest-ever production in April. According to a senior official at Mahanandi Coalfields (MCL), production could have been better by about 1 million tonnes, but work was stopped for four days.

In April, CIL supplied 62.3 million tonne of coal, nearly 5 million tonne more than offtake of 57.4 million tonne. There was a high base for the 8.6 percent growth during the month.

Almost all of CIL's units grew.

During April, CIL's coal delivery to NRS saw a sharp 44 percent increase, stabilizing the demand from the power sector. Compared to April 2022, the company supplied 11.8 million tonne to its NRS customers. The country supplied 50.6 million tonne of coal to coal-fired power plants in April, up from 49.3 million tonne.

"Coal availability is comfortable with domestic coal-based power plants stocked with 33.8 million tonne as of April-end. This is 62 per cent higher than 20.8 million tonne of the same period last year," the statement said.

Stock depletion during April was merely 0.8 million tonne at the plants' end, compared to 34.6 million tonne at the beginning of FY'24.

In April, CIL's pitheads had a coal inventory of 64.6 million tonnes, an increase of 13 percent from last April. As a result of CIL's higher production, stocks reduced only 4.9 million tonnes.

The system has 115 million tonnes of coal stock, including 33.8 million tonnes for domestic power plants, 64.6 million tonnes at CIL pitheads, 13.3 million tonnes at private washeries, goods sheds, captive mines, and ports, while 3.5 million tonnes are in rakes on run, or coal in transit.