Coal India output, sales rise as power plants rebuild stockpiles

2nd March 2018 By: Bloomberg

NEW DELHI – Coal India Limited's shipments rose 4.8% from a year ago and output increased for a seventh straight month as power plants bought up fuel to replenish stockpiles and meet increasing demand for electricity.

Sales totalled 49.97-million metric tons in February, according to a stock exchange filing Thursday. Production rose 0.3% from a year ago to 54.46-million tons. Output in the first 11 months of the year ending in March advanced 1.4%, while sales were up 7%, lagging the company’s annual targets.

The Kolkata-based State miner, which accounts for more than 80% of India’s coal output, has seen production rise year-on-year every month since August as power plants, its biggest customers, seek to build inventories. Sales in January reached a record.

Some power plants, including those of State-run generator NTPC, are facing coal shortages, data from the Central Electricity Authority show. The company’s non-power customers, including cement and aluminum makers, are witnessing a bigger shortfall and are relying more on imports as Coal India prioritises supplies for electricity.