Coal India’s May sales driven sharply lower by slump in power demand

CHENNAI: Coal IndiaNSE -3.43 %’s sales fell 23.3% in May as utilities refrained from purchases amid record stockpiles and tepid demand because of a nationwide lockdown to curb the spread of the coronavirus.

Offtake by customers, such as power generators, fell to 39.95 million tonnes in May, down 23.3% year on year, though that represented a slight improvement from the 25.5% fall in April. May production fell 11.3% to 41.43 million tonnes, compared with a 10.9% fall the previous month.

More than three quarters of the electricity generated in India is derived from coal, with Coal India – the world’s largest coal miner – accounting for more than four fifths of India’s domestic production.