Coal India expects to supply 156 MTs of coal to power sector during April-June

Coal India Limited (CIL) expects to supply 156 million tonnes (MTs) of coal to the power sector during the April-June’23 quarter, despite concerns about a surge in coal demand. This represents 25.6% of the increased annual dispatch target of 610 MTs set for this sector in 2023-24.

Factors in CIL’s favour include a strong 68 MT coal stock build-up expected at its pitheads by the end of 2022-23, which was 57.3 MTs as of March 13, 2023. Furthermore, the company would be ramping up production to a higher orbit while maintaining the pace set by an unprecedented 700 MTs output by the end of FY23.

According to a high-ranking representative from CIL, the company is expected to maintain a substantial coal reserve of 50 million tonnes at their mining sites by the conclusion of June 2023, despite having already delivered the projected amount of coal to power plants in the first quarter of the fiscal year 2024.

The state-owned coal mining behemoth believes it will meet the increased 610 million tonnes (MT) coal supply target for the power sector in 2023-24. The target is 20 MTs higher than the initial 590 MT requirement projected by the power sector.

‘We are fully aware of the importance of meeting the surge in demand from the power sector and would do everything in our power to meet it,’ stated the executive.

CIL has set an ambitious target of supplying 610 million tonnes of coal to the power sector in the fiscal year 2023-24, which constitutes nearly 75% of the projected domestic coal demand of 821 million tonnes for the same period.

The company is on track to end FY’23 with more than 585 MTs despatched to the power sector, an 8.3% increase over 540 MTs in FY’22.

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