Coal India Raises Coal Supplies to Power Sector by 6.1% in H1 FY27a

The state-owned mining company saw stronger momentum during the second quarter, when coal offtake rose 12.05 per cent to 186.04 MT from 166.04 MT in Q2 FY26.

September also recorded a sharp increase in supplies. CIL's total coal offtake during the month stood at 61.20 MT, up 12.5 per cent from 54.40 MT in September 2025.

The company said the performance reflected an improvement in its coal supply chain, supported by higher evacuation, better coordination between production and dispatch and greater utilisation of pithead inventories.

CIL liquidated 63 MT of accumulated pithead coal stocks during the first half of FY27, indicating that the increase in supplies was supported by both current production and more efficient inventory utilisation.

Coal dispatches to the power sector during H1 FY27 stood at 302.8 MT, compared with 285.4 MT in the same period of FY26. This represented an increase of 17.4 MT, or 6.1 per cent.

The power sector accounted for nearly 79 per cent of CIL's total coal offtake during the first half of the financial year, highlighting its continued importance in the company's distribution strategy.

Power-sector coal supplies also increased during the second quarter, rising 11 per cent to 148.20 MT from 133.50 MT in Q2 FY26.

In September, CIL's supplies to the power sector increased 10.63 per cent to 48.90 MT from 44.20 MT a year earlier. Overall coal supplies during the month rose 12.5 per cent.

The company also reported sustained daily dispatch volumes during September. Power-sector dispatches during the month amounted to approximately 48.99 MT, averaging around 1.63 MT per day. Average daily dispatch during the final seven days was around 1.59 MT, compared with approximately 1.51 MT during the first seven days.

CIL said it had maintained high-volume daily supplies through the closing phase of the monsoon and into the post-monsoon period.

The increase in coal availability was accompanied by higher domestic coal-based power generation. Generation rose 9.9 per cent to 640.05 billion units (BU) during H1 FY27, compared with 582.5 BU during the corresponding period of FY26.

CIL's distribution system has also become more diversified, moving beyond a predominantly linkage-based model. Power-sector demand continues to be served primarily through Fuel Supply Agreements and linkage mechanisms, while short-term requirements can be met through additional market-based channels.

The company said linkage rationalisation, digital systems, consumer-facing portals and improved logistics have further enhanced flexibility and efficiency across its coal supply network.