Coal production slips 8.5% in October following prolonged monsoons

Coal production in October slipped 8.5% on a year-over-year (YoY) basis to 77.43 million tonnes (MT) marred by a prolonged monsoon and resulting subdued demand for power. The production scaled below the stipulated target of 79.59 MT for the reporting month.

Data from Grid Controller of India (erstwhile POSOCO) indicated power generated from all sources declined 5.95% in October on a year-over-year basis, and 8.93% from September this year. Standalone power generated from coal declined 13.1% in October from the comparable period last year.

Overall off-take also slipped 4.75% on a year-over-year basis in October. Dispatch to several sectors, including power and steel, among others, took a hit excluding cement where off-take rose 11.3% to 0.62 MT.

Coal India accounted for approximately 73% of the overall production during the month. Accounting for all their subsidiaries alongside, production of the state-owned miner declined 9.75% in October to 56.38 MT.