India’s coal sector achieved a remarkable milestone in the first quarter of FY 2023-24, by recording highest ever coal production at 223.36 million tonne (MT), representing a substantial growth of 8.55% compared to the production of 205.76 MT during the same period during FY 2022-23.
Coal India Limited (CIL) registered 175.48 MT production between April and June 2023, marking a commendable growth rate of 9.85% in comparison to 159.75 MT during the corresponding period of the previous year. The consistent upward trajectory in coal production highlights India’s commitment to meet its energy demands and drive sustainable economic growth.
While coal imports increased by 16.76% during April 2023 to May 2023, as compared to the same period in the previous year, it is important to note that this rise is primarily attributable to the substantial decline in coal import prices. Import prices for coal have plummeted by over 60% in the Q1 of FY’ 2023-24, compared to the Q1 of the FY’ 2022-23.
Consequently, the e-auction premium over the notified prices of CIL has witnessed a significant reduction, declining from 357% in June 2022 to 54% in June 2023, mainly due to the sharp fall in import prices. The premium on coal auction speaks of pulse of industry. The sharp decline in coal auction premium is indicative of adequate coal availability in domestic market. This decline in import prices has played a crucial role in shaping the import landscape for coal.
