Coal India production drops by 8.5 per cent in June

Coal India Ltd reported an 8.5 per cent drop in June production to 57.8 MT, likely due to monsoon disruptions. Offtake also fell. Despite this, the government assures no coal shortage and remains focused on reducing imports and boosting domestic output

New Delhi: State-owned CIL on Tuesday said coal production dropped by 8.5 per cent to 57.8 million tonnes (MT) in June even as the government aims to increase the output to reduce the dependency on imports.

The coal production by the PSU was 63.1 MT in the corresponding month of the previous fiscal, Coal India Ltd (CIL) said in a regulatory filing. The coal output by the PSU in the first three months of the current fiscal also dropped to 183.3 MT, over 189.3 MT produced in the April-June period of the previous financial year.

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The company, however, did not give a reason for the decline in coal production. According to industry analysts, coal production usually faces hindrances during the monsoon season. As a result the output from mines is lower, which consequently affects the dispatch to power plants.

Coal offtake by the PSU also dropped by 7.4 per cent to 60.4 MT in the month of June, over 65.2 MT in the corresponding month of the previous fiscal. Coal offtake refers to the amount of coal that is supplied from a coal mine or coal company to its consumers.

The coal offtake by CIL during April-June period also declined to 190.1 MT, over 198.9 MT in the corresponding month of previous fiscal. Coal India accounts for over 80 per cent of domestic coal output.

Coal Minister G Kishan Reddy had earlier said that the country will not face any shortage of coal in the upcoming monsoon season, as the government is well prepared to meet the demand across various sectors, including the power sector.

The coal ministry had earlier said that it remains committed to achieving sustainable growth, improving coal availability, and reducing dependence on imports. With the positive momentum, the coal sector continues to play a pivotal role in powering India’s growth story. Coal India Ltd is targeting a production of 875 million tonnes and offtake of 900 MT in 2025-26.