New Delhi: India’s coal sector achieved a remarkable milestone in the first quarter (Q1) of FY 2023-24, by recording the highest-ever coal production at 223.36 million tonne (MT), representing a substantial growth of 8.55 percent 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 percent 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 percent during 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 percent in the Q1 of FY'2023-24, compared to the Q1 of the FY'2022-23.
Consequently, the e-auction premium over the notified prices of CIL has witnessed a significant reduction, declining from 357 percent in June 2022 to 54 percent in June 2023, mainly due to the sharp fall in import prices. The premium on coal auction speaks of pulse of industry. The sharp decline in coal auction premium is indicative of adequate coal availability in 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) and 6.54 MT at Private Washeries/Good shed siding/Ports) during the end of June 2023, indicating a growth of 37.62 percent 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," Ministry of Coal said in a statement.
India has set a coal production target of 1,012 MT for FY 2023-24.