Coal India Limited surpasses production targets in Q1 FY 2025 with significant growth

Coal India Limited (CIL) has surpassed its production targets for the first quarter of FY 2025, achieving a notable increase in coal output and meeting robust energy demands. The state-owned enterprise reported a production of 189.3 million tonnes (MTs) in Q1, marking a nearly 8% growth over the 175.5 MTs produced during the same period in the previous fiscal year. This performance is particularly commendable as it exceeded the target of 189.2 MTs, achieving 100% satisfaction.

In June 2024 alone, CIL recorded a production of 63 MTs, representing a 9% increase compared to the 58 MTs produced in June of the previous year. This increase underscores CIL’s operational efficiency and its ability to ramp up production in response to increasing demand.

Alongside its production achievements, CIL also noted a significant rise in coal supplies, which reached 198.4 MTs during the April to June 2024 period. This represents a 6% year-on-year growth, with an 11.4 MT increase from the previous year’s base of 187 MTs. Notably, coal supplies to thermal power plants, which are crucial for meeting the country’s escalating power demands, grew by 4% to 160 MTs.

Furthermore, CIL’s performance in the non-power sector was impressive, with supplies hitting a record high of 38.4 MTs during Q1—a 16% increase compared to the same period last year. This growth is particularly significant in June 2024, where a 23% increase was recorded.

Operational enhancements have been a key focus for CIL, with the company increasing its average daily loading to 325.7 rakes to the power sector during the quarter, up from 306.7 in the previous year. This 6% growth in rake loading efficiency is critical for ensuring timely and efficient coal supply across regions.

Additionally, the overall average coal loading saw a double-digit growth of 10.3% year-over-year, amounting to 367.2 rakes per day. CIL’s strategic improvements in loading operations from its own sidings, private washeries, and goods sheds have contributed significantly to this performance.

As of the end of Q1 FY 2025, CIL’s coal inventory at pitheads stood at an impressive 81.5 MTs, which is 40% higher than the comparative period last year. This substantial inventory provides CIL with a robust buffer to meet any sudden surge in demand, ensuring stability and reliability in supply.

CIL’s proactive strategies in increasing production capacity and improving supply chain efficiencies are pivotal in supporting India’s energy demands. The company’s focus on enhancing loading operations and maintaining a healthy inventory are critical elements that will help it navigate the fluctuations in demand and supply dynamics effectively.