India’s coal sector achieved a remarkable milestone in the first quarter of FY 2023-24, by recording the highest-ever coal production at 223.36 million tonnes (MT), representing a substantial growth of 8.55% compared to the production of 205.76 MT during the same period during FY 2022-23.
Coal India Limited (CIL) registered 175.48 MT production between April and June 2023, marking a commendable growth rate of 9.85% in comparison to 159.75 MT during the corresponding period of the previous year. The consistent upward trajectory in coal production highlights India’s commitment to meet its energy demands and drive sustainable economic growth.
While coal imports increased by 16.76% from April 2023 to May 2023, as compared to the same period in the previous year, it is important to note that this rise is primarily attributable to the substantial decline in coal import prices. Import prices for coal have plummeted by over 60% in the Q1 of FY 2023-24, compared to the Q1 of FY 2022-23.
37.62% Growth in Coal Stock by the end of June 2023
Consequently, the e-auction premium over the notified prices of CIL has witnessed a significant reduction, declining from 357% in June 2022 to 54% in June 2023, mainly due to the sharp fall in import prices. The premium on coal auctions speaks of the pulse of the industry. The sharp decline in coal auction premiums is indicative of adequate coal availability in the domestic market. This decline in import prices has played a crucial role in shaping the import landscape for coal.
As far as availability of coal is concerned, there is enough stock of coal available in the country which is 107.15 MT (67 MT with coal companies, 33.61 MT with TPP (DCB) & 6.54 MT at Private Washeries/Good shed siding/Ports) during the end of Jun’23, indicating a growth of 37.62% as compared to the same period of last year. The availability of substantial coal stock ensures a stable supply for various sectors dependent on coal, thereby contributing to the overall energy security of the nation.
India’s achievement in coal production reflects the concerted efforts of the coal industry and its commitment to meeting the growing energy needs of the nation. The record-breaking figures not only demonstrate the industry’s resilience but also its ability to adapt to market conditions while striving for sustainable growth.
Disclaimer: This is an official press release by Pib.