New Delhi: Coal India Ltd’s production and shipments in November rose to the most for the month in at least five years, as power plants procured more coal to boost inventories.
The Kolkata-based miner’s output has increased year-on-year for the past four months following a reduction in its own stockpiles and a surge in demand from power plants, its biggest customers. Coal India’s stockpiles had more than halved since the start of this fiscal year to 31.3 million tonnes as of 30 September, compared with 68.4 million tonnes on 31 March.
“Power plant inventories have started inching up, but there’s still some distance to go," said Rupesh Sankhe, an analyst at Reliance Securities Ltd in Mumbai. “That gives an assurance that demand for Coal India is likely to remain strong in the coming months." Bloomberg