Coal India Ltd (CIL) is looking to step up supplies to the power sector by nearly 23.4 million tonnes (mt) in 2023-24, in the wake of reports of a demand surge expected during the peak summer months.

CIL’s supply to the power sector in FY-24 is pegged at 610 mt, up four per cent on the record 586.6 mt supplied in FY-23, against a target of 565 mt set for the year. The apportioned quantity accounts for a little over 74 per cent of the estimated requirement of domestic coal-based plants at 821 mt during the year. 

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CIL is gearing up to meet the requirement on the back of adequate coal stocks at its pitheads and increased production in the first quarter of FY-24.

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“With increasing production and adequate coal stocks of 69 mt at our pitheads, we aim to meet the projected target ,” a senior company official said in a press statement.   

“With large tracts of over-burden already removed, exposing the coal seam, ramping up production should not be a problem,” he added.

Domestic coal-based electricity generation in FY-23 witnessed 10 per cent y-o-y growth, with 80 per cent of supplies through CIL sources.  

Domestic coal available in the system as of April 1, 2023 is around 125 mt, the highest, barring the Covid year of 2019-20, when demand plummeted. This includes 69.6 mt at CIL’s pitheads, 34.6 mt at thermal power plants, 13.7 mt at goods sheds, washeries, captive mines and ports put together, around 3 mt in transit and 4.5 mt at Singareni Collieries Company Ltd.

“We do not foresee a situation where power generation will be interrupted for want of coal,” the executive said. 

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CIL’s production and offtake for 2023-24 is targeted at 780 mt. With 610 mt of this set aside to meet the power sector’s demand, availability for the non-regulated sector (NRS) increases sizably. Even after compensating for any unforeseen demand surge from the thermal power plants, coal availability for NRS would be much better in FY-24 than a year ago. CIL’s supply to NRS in FY-23 was 108 mt.

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