Coal India exceeds annual production target growth in 2023

The state-owned Coal India Ltd. (CIL) recorded robust production of 460 million tonnes (MTs) of coal in the current financial year ended November. With a remarkable annual growth of 11.5%, CIL has exceeded the annual target rate of 10.2%. This production boost represents an increase of 47.4 tonnes compared to the corresponding period last year, which recorded a production of 412.5 tonnes.

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Each of CIL’s seven coal-producing subsidiaries recorded growth, with BCCL and NCL significantly achieving their progressive targets. In November 2023, total coal production reached 66 tons, an increase of 8.7% compared to the 60.7 tons in November 2022, a significant increase of 5.3 tons.

Production from CIL’s top 35 mines, each with a capacity of 5 tonnes per year or more, accounted for approximately 75% of total production in April-November 2023, reaching 344 tonnes. This is consistent with the expected contribution of these high-producing mines, which are being closely monitored by CIL, the report said.

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CIL’s total shipments recorded a significant increase, increasing in quantitative terms by 39 tonnes to 485.4 tonnes in the eight months ended November FY2024, registering a growth of 8.7%. In the corresponding period of fiscal year 2023, deliveries amounted to 446.4 tons. Furthermore, coal extraction reached 63 tonnes in November 2023, exceeding the 60.7 tonnes recorded in November 2022 by 2.3 tonnes, the report adds.

CIL’s shipments to the power sector reached 398.7 tonnes, up 18 tonnes by end-November in FY2024, registering a growth of 4.7%, even amid a significant increase in power demand. From April to November, the latest tax deliveries to this sector amounted to 380.8 tonnes. According to the report, CIL is confident of exceeding the demand forecast of 610 tonnes set by the power ministry for the current financial year.

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Facing a challenging task, CIL aims to deliver growth in the remaining four months of fiscal 2024 from the elevated base of the penultimate four months of the previous fiscal. Intensive efforts are being made to achieve this goal. Coal inventory at CIL’s mines stood at 45 tonnes year-to-date, a significant increase of about 58% compared to 28.5 tonnes in the same period last year, the report added.

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