The state-owned company Coal India Ltd (CIL) reported that its coal production increased by 8.4 percent, reaching 50.36 million tonnes (MT) in July. Despite difficulties caused by rains, the company demonstrated steady growth in coal extraction.
CIL, which supplies over 80 percent of domestic coal production, managed to maintain stable supplies through a demand-responsive inventory optimization strategy, allowing it to keep an optimal balance between production and consumption.
The company stated that 'Coal India Ltd recorded a robust operational performance in July 26-27, registering an 8.44 per cent growth in coal production.' Furthermore, coal shipments in July rose by 18.38 percent compared to the same period last year, amounting to 64.19 MT.
Coal shipments in July of fiscal year 27 were the highest for the entire month in any fiscal year. The previous July record was 60.5 MT, achieved in fiscal year 24-25. This strong operational momentum followed another record result in June of fiscal year 27, when CIL shipped 65.95 MT of coal, marking the highest shipment figure for June.
As a result, cumulative coal shipments by the company for the first four months of fiscal year 27 (April-July) increased by 6.9 percent, reaching a volume of 262.04 MT, which is the largest volume shipped for the corresponding period. The previous record was 259.4 MT for the April-July 2024-25 period.
Coal supplies to the energy sector, the company's largest consumer, also rose by 18 percent, increasing to 49.77 MT in July compared to 42.35 MT in the same month last year. Supplies to the unregulated sector also showed healthy growth, increasing by 21 percent to 14.42 MT from 11.89 MT during the same period.
CIL also achieved significant improvement in overburden removal (OB), a key mining activity supporting sustainable coal production. In July, overburden removal increased by 21.11 percent, reaching 120.35 million cubic meters (MCuM) compared to 99.36 MCuM in July of fiscal year 26.
On a cumulative basis, overburden removal for the April-July period of fiscal year 27 amounted to 625.02 MCuM, demonstrating a growth of 2.85 percent compared to the same period last fiscal year. Overburden removal is critical for open-pit coal mining as it involves removing soil, rock, and other materials covering the coal seam to expose the coal reserves for extraction. Timely and adequate overburden removal ensures uninterrupted access to coal seams, contributing to sustained production.
In the current fiscal year, CIL aims for a coal production of 815 MT and shipments of 850 MT.