RECORD COAL PRODUCTION IN Q1 FY 2023 – 24
India Achieves Record Coal Production: Q1 FY 2023-24 Witnesses Remarkable Growth of 8.55%
During the first fiscal quarter of 2023-24, there were record-breaking levels of coal production, reaching an all-time high of 223.36 million tons.
From April to June 2023, the production output of Coal India Limited witnessed a significant rise by 9.85%. Moreover, there was an impressive growth rate of 37.62% in coal stock by the tail end of June 2023.
During the first quarter of the Fiscal Year 2023-24, India’s coal sector marked a significant achievement.
The coal production reached a record peak of 223.36 million tonnes (MT), an impressive growth of 8.55% compared to the same period in Fiscal Year 2022-23 where production stood at 205.76 MT. This represents the highest ever coal production in the country’s history.
Between April and June 2023, Coal India Limited (CIL) successfully recorded a production of 175.48 MT, showcasing a remarkable increase of 9.85% compared to the same time frame last year, which saw a 159.75 MT production.
This consistent increase in coal production underscores India’s dedication to fulfilling its energy requirements, thereby promoting stable economic development.
Between April and May 2023, coal imports saw a rise of 16.76% compared to the same timeframe in the previous year.
This increase is primarily due to the significant drop in coal import prices. In comparison to the first quarter (Q1) of the financial year (FY) 2022-23, coal import prices drastically fell by more than 60% during Q1 of FY 2023-24.
As a result, the e-auction premium above the listed prices of CIL has noticeably decreased, dropping from 357% in June 2022 to 54% in June 2023.
This can be primarily attributed to a considerable drop in import prices. The premium on coal auction symbolizes the state of the industry.
The marked decrease in coal auction premium suggests that there is sufficient availability of coal in the domestic market. The reduction in import prices has been instrumental in reshaping the coal import landscape.
Regarding the availability of coal, the country has an ample supply with a total stock of 107.15 MT as of the end of June ’23.
This stock is distributed as follows: 67 MT with coal companies, 33.61 MT with TPP (DCB), and 6.54 MT at Private Washeries/Good shed siding/Ports.
This indicates a significant growth of 37.62% compared to the same period from the previous year. The substantial coal reserves ensure a consistent supply to the various sectors that rely on coal, thus bolstering the nation’s overall energy security.