Coal India Ltd output falls for second year in a row in FY21

Coal India’s output declined 1% annually to 596.2 million tonne in FY21, mainly due to lower demand from power plants in the fiscal amid reduced electricity requirement. This is the second year in a row when the coal behemoth — which produces about 80% of the country’s coal — reported a decline in production.

Consumers procured 573.8 MT of coal from the miner, which is 1.3% lower than FY21. With lower offtake, stock of excavated coal lying at CIL mines has swelled to an all-time high level of 96 MT. Coal companies have to moderate production according to offtake, as coal cannot be stockpiled beyond a certain quantity without the risk of catching fire.