Coal news and updates

India’s coal production records 7.2% growth in November, dispatches rise 3.85%

Production from captive and other entities saw a significant jump, recording 17.13 MT in November 2024, a rise of 37.69% compared to 12.44 MT in November 2023.

New Delhi: India’s coal production increased by 7.2% year-on-year in November 2024, reaching 90.62 million tonnes (MT), compared to 84.52 MT in the same month last year, according to provisional data from the ministry of coal.

Production from captive and other entities saw a significant jump, recording 17.13 MT in November 2024, a rise of 37.69% compared to 12.44 MT in November 2023.

Cumulatively, coal production for FY 2024-25 up to November reached 628.03 MT, marking a 6.21% growth from 591.32 MT during the same period in the previous fiscal year, the ministry said.

Coal dispatches also recorded growth, rising to 85.22 MT in November 2024, up 3.85% from 82.07 MT in November 2023. Dispatches from captive and other entities grew by 25.73%, reaching 16.58 MT compared to 13.19 MT in the same month last year.

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Cumulative dispatches for FY 2024-25 up to November reached 657.75 MT, an increase of 5.45% from 623.78 MT in the corresponding period last fiscal year.

The ministry of coal said the growth in production and dispatches reflects its focus on meeting the country’s energy requirements through enhanced coal availability and efficient distribution.

The hike is expected to generate around Rs 300 crore in incremental annual revenue for ECL, contributing significantly to the company's financials.
"This increase aligns with the need to account for higher logistics expenses, ensuring sustainable operations in the Rajmahal area," an ECL spokesperson said.
Meanwhile, ECL parent firm Coal India in a filing said, "The Board of Directors of Coal India Limited at its meeting held on date has approved revision of Add-on Price of coal with respect to Rajmahal Area of Eastern Coalfields Limited to Rs 700 per tonne from Rs 450 per tonne w.e.f. 30.11.2024."
Due to this revision, Eastern Coalfields Ltd (ECL) will earn an incremental revenue of around Rs 300 crore per annum, it said.
ECL Director Technical Niladri Roy told PTI that coal from Rajmahal mine was being supplied to NTPC's Kahalgaon and Farakka super thermal power plants at low transportation cost. The add-on price has been revised with the consent of NTPC.
He further said that for the last seven years, there was no price increase of coal in all mines of CIL and added that "if we don't increase the price then this mine won't survive."

Mining major Coal India Ltd had earlier hinted that it might raise prices of the dry fuel by at least 10-11 per cent to mitigate the impact of increased costs. The Kolkata-headquartered company had last hiked coal prices in 2018. Coal India accounts for over 80 per cent of domestic coal production.