State-controlled producer Coal India Ltd. (CIL) plans to raise its output by 11% during the April 2023-March 2024 fiscal year from a year earlier, to meet an anticipated increase in demand from utilities, Argus Energy reported. CIL, which meets more than 80% of India’s coal needs, is targeting 780 million metric tons (mt) of coal in 2023-24, up from 703.2 million mt in 2022-2023, a senior company official said.
The higher production and supply target for the fiscal year follows CIL’s aim to boost supplies to the power sector to 610 million mt during 2023-24, up from 586.6 million mt a year earlier. The target comes as authorities are making efforts to increase domestic coal availability to utilities to meet the anticipated surge in electricity demand, especially given the forecast of heatwaves in parts of the country in coming months, which will raise air conditioning use.
India’s nationwide coal-fired power generation, which accounts for the bulk of its overall electricity generation, edged higher in March
to 103.09 TWh from 103.06 TWh a year earlier and from 94.43 TWh in February, Central Electricity Authority (CEA) data show. Coal inventories at Indian power plants were around 37 million mt as of March 31, equivalent to just above 13 days of consumption, according to the CEA data. Stocks were up from 33.66 million mt as of February 28. The power ministry has asked pithead power plants to maintain 12-17 days of coal stocks, while non-pithead utilities are mandated to have 20-26 days of inventories. Stocks at CIL’s mines amounted to 69.6 million mt as of April 1.
