Coal India Limited (CIL) is expected to accelerate coal production and dispatch as heavy monsoon rains ease across major mining regions. Improving weather and mine conditions have already helped operations recover.
During April-August of the current financial year, CIL supplied 322.90 million tonnes (MT) of coal, marking a 6.70% increase from 302.60 MT supplied during the same period last year.
Coal production also showed improvement in early September. Average daily output rose from around 1.36 MT during the first three rain-affected days of the month to nearly 1.7 MT on September 4.
Mine Conditions Improve
The easing rainfall has helped coal beds dry out and allowed mining to resume in lower mine areas affected by waterlogging. Pumping operations, repairs to internal roads and improved ground conditions are expected to further support production.
Overburden removal, which indicates the readiness of coal seams for future production, also increased from 2.5 million cubic metres per day during the first three days of September to 4.1 million cubic metres on September 4.
CIL supplied 60.60 MT of coal in August, 5.50% higher than the same month last year. Coal supplies to the power sector rose 4.5% to 48.46 MT.
Coal Stocks and Evacuation
CIL currently holds around 76 MT of coal stock at its pitheads, along with approximately 46 MT of ready-to-mine coal exposure. Average daily coal dispatch to the power sector increased from about 1.35 MT during the first three days of September to 1.5 MT on September 4.
CIL subsidiaries are also improving evacuation infrastructure by upgrading coal handling and silo systems, clearing railway tracks and expanding crushing capacity.
Additional Coal for Power Plants
CIL has offered additional coal to power plants operating under Fuel Supply Agreements with the company and its subsidiaries. Under existing provisions, plants can lift additional quantities through road transport in addition to rail supplies.
With rainfall easing, CIL expects production, loading and dispatch to gain further momentum in the coming days and is monitoring the situation to maintain uninterrupted coal supplies to the power sector.
