Coal India’s output up 9.5% in May 2023 & OBR 35%

Coal India’s (CIL) May 2023 production rose to a record 60 million tonnes (MTs) logging 9.5% growth over the same month last year with an increase of 5.2 MTs. Considering the production for May generally hovers in the range of 40 MTs to 48 MTs, CIL output surge in current fiscal’s May was substantial. All the subsidiaries of CIL have listed positive growth.

Although the growth logged in May 2022 was higher at 30%, in real terms the production was 54.7 MTs, exceeding the 50 MT mark for the first time. CIL’s growth in May 2023, in volume and percentage terms came on the back of a very high base.

Progressive production till May 2023 was 117.5 MTs increasing by 9.3 MTs, citing 8.6% year-on-year growth. Production was 108.2 MTs same period last fiscal.

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.

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.

CIL’s over burden removal went up sharply to 178.2 million cubic metres (M.Cu.M) in in May 2023 logging a robust 35% growth over May 2022 with all the subsidiaries achieving growth. OBR growth bodes well for future coal production apart from stabilizing mine geometry. For the two month period till May FY 2024 CIL excavated 346 M.Cu.M of OBR registering 32% growth.

In an encouraging sign supplies to non-power sector at 22.3 MTs posted 29% y-o y growth ending May FY 2024. This is a jump of 5 MTs in a two month compared to 17.3 MTs of year ago same period.

Already deep into summer the domestic coal-based power plants, with bulk of the supplies swelled by CIL, are comfortably stocked with 35 MTs of coal as of May end. This is 13.2 MTs or 60% higher than 21.8 MTs over May 2022. Coal inventory at CIL’s pitheads is at 61MTs. Further, coal at private washeries, goods sheds, captive mines, ports and in transit accounts to the tune of 15 MTs. Cumulatively, there is sufficient coal buffer of around 111 MTs.