Coal news and updates

Coal India, the world’s biggest miner of the fuel, has informed bourses about its annual production and offtake numbers on Monday. Company achieved output of 554.1 million tons during financial year 2017, registering 2.9 per cent growth, while offtake rose 1.6 per cent to 543.2 million tons. However, despite record production, the company has missed the target of coal production by 7.43 per cent and offtake target by 9.26 per cent. 

 

The company has also set monthly records in March. Production of 66.1 million tons was 4.5 per cent higher than target of 63.23 million tons, while offtakes declined 10.3 per cent to 52.3 million tons against the target of 58.3 million tons. However, both increased year-on-year for five consecutive months. 

 

The surge in output and offtakes last month highlights the recovery in demand from power plants gearing up for India’s peak demand season, which will fade when summer ends. Coal stockpiles at power plants, which consume about 75 per cent of Coal India’s production, have risen almost 50 per cent since November, as per the latest data from the Power Ministry’s Central Electricity Authority. Rising inventories may dampen purchases from power generators. 

 

Power stations in the country remain under-utilised as they can’t find buyers for all the electricity they can produce. Coal-fired power plants reported 61.8 per cent utilisation in February, compared to last year’s 65.2 per cent. 

 

Further, production usually slides during monsoon months of July, August and September, as heavy rains flood mines and there is slow movement of coal trucks. 

 

The steep growth in March output will help meet the summer demand and offset some of the production losses, which the company may face during the monsoons.

Source:DSIJ