CIL's FY24 production jumps 10% as stock gets a fillip ahead of summer
The jump in coal production comes at a time when the country is preparing for a record high power demand expected due to extreme heat this summer
 "CIL's FY24 production jumps 10% as stock gets a fillip ahead of summer")
National miner Coal India Limited (CIL) witnessed a double-digit growth in production for the second year in a row, for the first time in its history.
The company, which closed the financial year 2023-24 with 773.6 million tonne (MT) of coal production, registered an annual growth of 10 per cent. That’s an increase of 70 MT over the year before. The company said coal production of 88.6 MT in March 2024 was the highest ever for any month to date. All the seven subsidiaries of CIL operating in different coal-bearing states have over-achieved their production targets.
Out of these, Odisha-based Mahanadi Coal (MCL) became the country’s first coal producing company to breach 200 MT annual production mark. “In the previous two financial years, CIL has increased its production by 151 MTs. This was higher by 22.6 MTs than the combined increase of 128.4 MTs achieved in six years from FY 2016 till FY 2022,” CIL said in a public statement.
ALSO READ: Coal India production hits record 703.91 MT this fiscal until March 7
The total coal supplies have hit 753.5 MTs during FY 2024 logging 8.5 per cent growth. To the power sector, which is the primary and the largest consumer, the supply witnessed an increase of 5.4 per cent. “Supply to the power sector has reached 618.5 MT in the just-concluded fiscal, 31.9 MT more compared to 586.6 MT of FY23. CIL supplied 8.5 MTs more coal to power plants than its assigned commitment of the year, that is, 610 MT, CIL reported.
Out of these, Odisha-based Mahanadi Coal (MCL) became the country’s first coal producing company to breach 200 MT annual production mark. “In the previous two financial years, CIL has increased its production by 151 MTs. This was higher by 22.6 MTs than the combined increase of 128.4 MTs achieved in six years from FY 2016 till FY 2022,” CIL said in a public statement.
ALSO READ: Coal India production hits record 703.91 MT this fiscal until March 7
The total coal supplies have hit 753.5 MTs during FY 2024 logging 8.5 per cent growth. To the power sector, which is the primary and the largest consumer, the supply witnessed an increase of 5.4 per cent. “Supply to the power sector has reached 618.5 MT in the just-concluded fiscal, 31.9 MT more compared to 586.6 MT of FY23. CIL supplied 8.5 MTs more coal to power plants than its assigned commitment of the year, that is, 610 MT, CIL reported.
The jump in coal production comes at a time when the country is preparing for a record high power demand that is expected due to extreme heat this summer. The company said enhanced production has helped the company build a coal inventory of around 90 MT which is 20.7 MT more than the same period last financial year – a near 30 per cent increase. Stock at CIL’s pitheads was 69.3 MT to the corresponding period last fiscal, it said. According to data available on National Power Portal, the average coal stock at the end of thermal power units stands at 15 days which the officials said is a comfortable inventory.
On average CIL loaded 292.2 railway rakes per day during FY24 against 273.6 rakes per day of FY23 registering a growth of 6.8 per cent.
Rail freight grows 5% in FY24
Due to a slow start in the financial year 2023-24 (FY24), Indian Railways registered a 5 per cent increase in its freight traffic despite a late push in the final quarter of the fiscal. The national transporter ferried 1.59 billion tonnes of goods in FY24, according to government sources.
The growth was primarily led by coal and iron ore, which have typically been the mainstay of the railways’ freight basket. The national transporter achieved a loading of 787.61 million tonnes (MT) in coal (up 8 per cent) and 180.95 MT in iron ore (up 13 per cent). “Coal is carried mostly by rail, so the railways always benefits from increased coal production. Coal consumption in India is only going to increase, which will augur well for railway freight earnings in the future,” said Lalit Changra Trivedi, former General Manager of East Central Railway.
CIL coal production
FY21 > 596.22 MT
FY22 > 622.63 MT
FY23 > 703 MT
FY24 > 773.6 MT
FY25 projection > 838 MT
CIL coal inventory
FY23 > 69.3 MT
FY24 > 90 MT