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COVID: Coal India sees 25.5% decline in coal offtake in lockdown month

In the backdrop of the COVID lockdown, the monthly report for coal production and coal offtake released by Coal India showed a decline in both

  • Coal India’s coal production has declined by 10 percent, while coal offtake has declined by 25.5 percent in comparison to April 2018

  • Coal production by Coal India stood at 40.38 MT in April, down from 45.30 MT in the corresponding month of the last year

New Delhi: In the backdrop of an economy that’s been in a state of abeyance for over a month now because of the Coronavirus lockdown, the monthly report for coal production and coal offtake released by India’s largest coal miner, Coal India, on Friday showed a decline in both. According to the report, the state-run company’s coal production has declined by 10 percent, while coal offtake has declined by 25.5 percent in comparison to April 2018.

Coal India which supplies 80 percent of the country’s coal production is the largest producer of coal and supplies the fossil fuel to both power and non-power sectors.

Decline in coal offtake signifies drop in demand during lockdown

Coal offtake is the amount of coal supplied from coal pitheads. As the economy has come to a standstill in the absence of industrial activity, coal offtake from Coal India pitheads has also dropped. While in April 2018, coal offtake stood at 52.41 MT (Million Tonnes), this year, the figure was at 39.06 MT in April. 

Since the lockdown has taken effect, India has witnessed a sharp decline in power consumption. India is still reliant on thermal power plants for bulk of electricity generation. And a fall in power consumption affects coal offtake as well.

Coal India production at 40.38 MT in April

Coal production by Coal India stood at 40.38 MT in April, down from 45.30 MT in the corresponding month of the last year. While MCL (Mahanadi Coalfields Ltd) contributed 11.53 MT to the total tally, SECL (South Eastern Coalfields Ltd) produced 9.30 MT, followed by NCL (Northern Coalfields Ltd) at 8.73 MT and WCL (Western Coalfields Ltd) at 3.45 MT. State-run ECL produced 3.39 MT of coal, while CCL (Central Coalfields Ltd) recorded production of 2.26 MT.