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Business News/ Companies / News/  Coal India sets new production record with 9.5% growth in May 2023
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Coal India sets new production record with 9.5% growth in May 2023

Coal India Limited (CIL) achieved a record production of 60 million tonnes in May 2023, marking a 9.5% YoY growth. All subsidiaries demonstrated positive growth, and supplies rose to 63.7 MTs. CIL's overburden removal showed robust growth of 35%, and supplies to non-power sectors reached 22.3 MTs. Coal-based power plants have a stockpile of 35 MTs, 60% higher than the previous year. There is a sufficient coal buffer of approximately 111 MTs.

Coal India sets new production record with 9.5% growth in May 2023: Photographer: Sanjit Das/Bloomberg (Bloomberg)Premium
Coal India sets new production record with 9.5% growth in May 2023: Photographer: Sanjit Das/Bloomberg (Bloomberg)

NEW DELHI: Coal India Limited (CIL) reported a milestone in May 2023, as it achieved a record production of 60 million tonnes (MTs), marking an impressive growth of 9.5% compared to the corresponding month in the previous year, according to a statement released by the company.

This increase of 5.2 MTs is particularly noteworthy given that the production range in May typically falls between 40 MTs to 48 MTs.

The company added that all subsidiaries of CIL demonstrated positive growth during this period.

While the growth rate in May 2022 was higher at 30%, the actual production was 54.7 MTs, surpassing the 50 MT milestone for the first time. CIL’s growth in May 2023, both in volume and percentage terms, was achieved on a high base.

The cumulative production until May 2023 reached 117.5 MTs, reflecting year-on-year growth of 8.6% or 9.3 MTs. During the same period last fiscal year, production stood at 108.2 MTs.

“In May 2023 total supplies rose to a healthy level of 63.7 MTs posting 4.1% compared to 61.2 MTs of May 2022. Except WCL which marginally fell short, supplies of all subsidiaries were ahead of last year’s May," the company said.

“For April-May 2023 coal off-take was 126 MTs clocking 6.2% growth compared to 118.6 MTs of same period last year. This increase is 7.3 MTs," it added.

CIL’s overburden removal (OBR) witnessed a sharp rise in May 2023, reaching 178.2 million cubic meters (M.Cu.M) and showing robust growth of 35% compared to May 2022. All subsidiaries contributed to this growth.

The increase in OBR is a positive indicator for future coal production and helps stabilise mine geometry. From April to May 2023, CIL excavated 346 M.Cu.M of OBR, registering a growth of 32%.

In a positive development, supplies to the non-power sector reached 22.3 MTs, posting a year-on-year growth of 29% by the end of May 2023. This represents an increase of 5 MTs compared to the same period last year, which stood at 17.3 MTs.

As the summer season intensifies, domestic coal-based power plants, which largely rely on supplies from CIL, have an ample stockpile of 35 MTs of coal as of the end of May. This is 60% higher than the 21.8 MTs recorded in May 2022, with a surplus of 13.2 MTs. Additionally, CIL’s pitheads hold coal inventory of 61 MTs.

Furthermore, there is an additional 15 MTs of coal stored at private washeries, goods sheds, captive mines, ports, and in transit. Cumulatively, there is a sufficient coal buffer of approximately 111 MTs.

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Published: 01 Jun 2023, 06:32 PM IST
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