State-owned Coal India (CIL) increased its supply of dry fuel to power-sector users by 11.01 per cent to 148.20 mn t in the second quarter of the current financial year, from 133.50 mn t in the year-ago period. The rise comes ahead of the festive season, when electricity demand generally increases.

The higher supplies enabled CIL to liquidate around 63 mn t of coal stocks at its pitheads during the first six months of the current fiscal. The company had approximately 67 mn t available at its pitheads and said the inventory was adequate to meet power-sector requirements in the coming months.

CIL, which accounts for more than 80 per cent of India’s domestic coal output, increased total supplies by 12.50 per cent to 61.20 mn t in September, compared with 54.40 mn t in the corresponding month of the previous fiscal. Supplies to the power sector rose 10.63 per cent to 48.90 mn t from 44.20 mn t, while deliveries to the non-regulated sector increased 19.41 per cent.

Coal production rose 9.18 per cent to 53.50 mn t in September, from 49 mn t a year earlier. Production during the July-September quarter increased 3.81 per cent to 151.37 mn t, compared with 145.82 mn t in Q2 of the previous financial year.

CIL said its operational performance during September and Q2 FY27 placed it in a strong position to pursue its production and supply targets. The company has been assigned a production target of 815 mn t and a supply target of 850 mn t for the current fiscal. With the monsoon season over, production and supplies are expected to improve further.

Coal and Mines Minister G Kishan Reddy said the country had no coal shortage despite higher thermal-power demand, monsoon-related mining disruptions and lower hydropower generation. He said thermal-power demand had increased by around 12 to 15 per cent as hydropower generation declined, while the overall situation remained normal.