India: CIL records 12% y-o-y drop in coal production for August 2024
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Coal India Limited (CIL), a Maharatna company and the largest coal-producing company in the world, has released its provisional production and offtake performance data for August 2024.
Production highlights
In August, CIL's total coal production for the month was 46.1 million tonnes (mnt), reflecting an 11.9% y-o-y decrease in coal production. The drop in production is attributed to operational challenges across some of its subsidiaries.
Cumulative production for April to August 2024 reached 290.4 mnt, a modest 3.2% y-o-y increase.
Offtake performance
Coal sales, a key indicator of market demand and supply efficiency, witnessed a decline in August. Total coal dispatches for the month were 52.1 mnt, an 11.8% decrease compared to August 2023. This reduction points to ongoing logistical and demand-side challenges.
For the April-August 2024 period, total offtake reached 310.0 mnt, a slight 1.4% growth over the same period last year. This trend aligns with the broader market dynamics and reflects CIL's continued efforts to manage supply chain complexities while meeting the energy needs of key sectors such as power, steel, and cement.
CIL set a production target of 838 mnt for the financial year FY'25, but current output stands at only 34% of the annual goal. Typically, production is lower in the first half of the year due to the monsoon season, with output increasing in the latter half.
