Coal India Steps Up Output, Supplies To Power Plants As Rains Subside

(MENAFN- Live Mint) New Delhi: State-run Coal India Ltd (CIL) on Wednesday said its coal production rose to 1.91 million tonnes (mt) on 8 September, 40% above the daily average for the first three days of the month, driven by a 67% increase in output at its subsidiary Northern Coalfields Ltd (NCL).

Despatches from Coal India's mines to the power sector rose 27% to 1.74 million tonnes on 8 September, from an average of 1.37 million tonnes a day during the first three days of the month, CIL said in a statement. This increase in coal output and supplies to power plants comes after reports said that about 58 thermal plants were operating with critically low coal inventories, potentially affecting electricity generation.

NCL produced 300,000 tonnes of coal on 8 September, compared to a daily average of 180,000 tonnes in the first three days of September, showing a marked improvement as rains abate.

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NCL's operations at its mines in Uttar Pradesh and Madhya Pradesh were among the worst-affected due to the recent rains. Around 87% of NCL's total coal supplies are directed to the power sector, with the bulk of it transported to power plants in Uttar Pradesh, Madhya Pradesh and Rajasthan. So far this financial year, NCL's total coal production stood at 51.43 million tonnes, while its supplies reached 55 million tonnes till 8 September, marking a significant recovery from the operational challenges posed by heavy rainfall.

"As the monsoon loosens its grip, Northern Coalfields Limited (NCL), one of Coal India Limited's (CIL's) major coal-producing subsidiaries, is picking up pace across its mines, with coal production rising by 67% and supply by 75% as on 8th September in comparison to average of 1st to 3rd September 2026," Coal India said in the statement.

"With the monsoon receding, NCL is further intensifying efforts to maximise production, strengthen evacuation by making optimal use of available resources. The focus is on converting improved mine conditions into higher production, faster dispatch and more dependable coal supplies," it said, adding that with mine accessibility improving, NCL has been able to move men, machinery and coal more efficiently. Priority restoration of internal roads has improved the movement of coal to coal handling plants and railway sidings, while continuous dewatering has helped reopen mining areas affected by water accumulation.

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It said that with rains subsiding, coal supplies to power plants are gradually moving towards pre-monsoon levels.

On Tuesday, Union minister for coal G. Kishan Reddy said that over 123 million tonnes of coal was available across mines, in transit and at thermal plants, enough to meet electricity demand for 51 days.

Reddy's comments came amid concerns that several thermal power plants across the country were running on critically low coal stocks, fuelling fears of power shortages.

He said that coal output and supplies would improve as the rains subside. Speaking to reporters on Tuesday, the minister said about 100 million tonnes of coal was at mine pitheads or in transit, while thermal power plants held about 23.7 million tonnes.

There is additional pressure on coal mines and coal-based power plants this year as the weak monsoon and El Nino conditions have increased the power demand both from the agriculture sector and households. While farmers are using pumps for irrigation amid weak rains, air-conditioner use in homes and commercial establishments has also risen amid humid weather. Further, hydropower, which usually makes up for the slowdown in coal-based power generation, has also seen a drop due to the weaker monsoon.

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India's power deficit has remained high in recent days, with shortages particularly pronounced in the northern and western regions, according to Grid Controller of India data. The deficit stood at 19.57 million units on Sunday, while it had crossed 28 million units on 5 September.

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