Coal India Sales Rebound in March Amid Rising Summer Power Demand

Coal India reported a marginal recovery in sales for March, marking its first monthly increase in six months. The state-run miner’s offtake rose by 0.7% to 69.5 million tonnes, even as its provisional output declined by 1.5% to 84.5 million tonnes, according to a stock exchange filing. The uptick signals a strategic buildup of coal stocks ahead of peak summer demand, particularly as disruptions in global gas supply—linked to geopolitical tensions involving the U.S., Israel, and Iran—tighten energy availability.

The company, which contributes over 80% of India’s coal production and remains the world’s largest coal miner by output, had witnessed six consecutive months of declining offtake following a strong 7.6% rise in August. Lower power demand due to milder weather conditions in recent months led to higher inventory levels at power plants, reducing the immediate need for fresh supplies and keeping coal imports subdued.

However, with a hotter-than-normal summer forecast and gas shortages limiting alternative power generation, India is expected to increase its reliance on coal, which already accounts for nearly 75% of its electricity production. Experts note that reduced liquefied natural gas availability and declining gas-based generation will further push coal demand. In response, authorities have directed coal-fired plants to operate at full capacity and advised industries to rely on captive power generation to ensure adequate electricity supply for households during peak demand periods.

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