India's total coal production reached 67.21 million tonnes (MT) for the month of September, 2023, compared to the previous year's 58.04 MT during the same period, the Ministry of Coal said on Tuesday (October 3).

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Coal India Ltd (CIL) contributed significantly to this growth, achieving a 12.63 percent increase with 51.44 MT production. The cumulative coal production for the month stood at 428.25 MT, marking a 12.06 percent rise compared to the corresponding period in the previous fiscal year.

Additionally, coal despatches experienced a notable boost, reaching 70.33 MT, with a growth rate of 15.12 percent.

CIL's despatches also saw a substantial increase, reaching 55.06 MT, a 12.57 percent growth over the previous year. The cumulative coal despatches up to September 2023, reached 462.32 MT, reflecting a 10.96 percent increase compared to the same period in the previous fiscal year.

The Ministry of Coal attributed this growth to efforts of coal public sector undertakings (PSUs), emphasising the efficiency of the coal supply chain. The ministry also reaffirmed its commitment to maintaining consistent coal production and despatches, ensuring a stable supply for the nation's energy sector.

India's power demand peaked in the range of 220-239 GW from mid-August to the first few weeks of September. The power deficit also peaked as the country witnessed the driest August in about 120 years.

The deficit increased as the contribution of renewable power generation decreased from 15 percent to 9 percent. It was to offset the rising demand and low production share from renewables that coal production and supply ramped up.

Coal contributed to 71 percent of the country's total power generation of the country. Though rainfall is not a concern anymore, analysts estimate that coal production will be sustained at the same level.

"Traditionally, the end of the year is not very demanding because agricultural and residential demand decreases. However, in the run-up to the general elections, power demand is expected to be above the base level of 190 GW. This year, residents may experience low to no load shedding issues and industries will feel compelled to finish their commitments before the election. Hence, power demand is not expected to go down like every year around this time," said Rupesh Sankhe, Vice President of Elara Capital.

As of September 30, the Ministry of Power notified that there is coal stock available for about 18 days. In October 2021, the country saw coal stock hit the lowest level with only three days of stock availability.

Also Read:Coal India's production reaches 43% of its annual target in September

(Edited by : Sangam Singh)

First Published:Oct 3, 2023 5:37 PM IST