Domestic coal production rises in Q1; coal prices witness downturn: CareEdge
New Delhi: India’s domestic coal production rose 8.6% year-on-year in the first quarter of the fiscal year 2023-24 (Q1 FY24), reaching an all-time high volume of 223.36 million tonne (MT). The surge in production was primarily driven by a robust 9.8% year-on-year (YoY) rise in output by Coal India Ltd (CIL), according to a report by CareEdge.
During Q1 FY24, the power sector maintained its position as the major consumer of domestic coal, accounting for a substantial 82% of the total despatches, underscoring the vital role of coal in meeting India’s energy demands. Tanvi Shah, director of CareEdge Advisory & Research, said, “The domestic coal production remained on a healthy growth path in Q1 FY24 and is expected to reach the government’s target of 1 billion tonne in FY24, a 13% growth year-on-year, driven by an increase in overall coal production by CIL and captive mines." Simultaneously, total coal imports rose 14% YoY to reach 47.27 MT during the same period.
Non-coking coal constituted the majority of the imports, accounting for 64% of the total imports. The CareEdge report highlighted the developments in the seventh round of coal block auctions, initiated in March 2023.
The government offered approximately 103 coal mines, comprising fully explored, partially explored, coking, non-coking, lignite, and other categories. The auction attracted significant interest, with 35 bids received for 18 coal mines.
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