Coal India Ltd (CIL) expects coal production and supplies to gather further pace as intense rains across coal-producing regions ease, with mine conditions improving and key operational activities gaining momentum.
Despite prolonged spells of rain through July and August, particularly across east-central regions, CIL supplied 322.90 million tonnes (MT) of coal during April-August of the current fiscal, registering a 6.70% increase over 302.60 MT supplied during the corresponding period last year.
The easing rainfall is helping improve mining conditions, with coal beds that had become sticky and wet now drying out. This is making freshly mined coal easier to transfer, handle and dispatch through Coal Handling Plants (CHPs).
Coal seams at lower mine horizons that were submerged are also being restored to production through augmented pumping, while repairs to internal haul roads are progressing.
Production gains momentum
CIL’s average daily coal production during the first three rain-affected days of September stood at around 1.36 MT, before rising to approximately 1.70 MT on September 4, following a single day of respite from rainfall.
Overburden Removal (OBR), a key indicator of coal-bed exposure and future production readiness, has also improved. Average daily OBR during the first three days of September stood at 2.5 million cubic metres, rising to 4.1 million cubic metres on September 4.
CIL said the improvement in overburden removal, together with drying mine conditions, is expected to provide further impetus to production and supplies in the coming days.
Power sector supplies remain strong
CIL supplied 60.60 MT of coal in August FY 2026-27, registering a 5.50% increase over August last year. Supplies to the power sector rose 4.5% to 48.46 MT in August 2026 compared with August 2025.
The company currently has a stock cushion of 76 MT of coal at its pitheads, along with 46 MT of ready-to-mine coal exposure.
Average daily dispatch to the power sector was around 1.35 MT during the first three days of September and improved to 1.5 MT on September 4.
With production and transportation expected to strengthen as ground conditions improve, CIL expects dispatch to evacuation points to increase in the coming days.
Mining operations prepare for dry season
The easing of rainfall has also reduced geo-technical concerns related to dump and bench stability, as well as associated safety risks that intensify during heavy rains. This is expected to allow mining operations to return to normal pace.
CIL subsidiaries have used the lean period to augment their CHP-Silo mechanisms to facilitate smoother coal movement. Rail tracks at loading points and yards are also being cleared ahead of the dry season.
Subsidiaries including NCL and SECL have created additional crushing capacity, which CIL expects to support coal movement in the near term.
The company said the spell of incessant rain has largely passed and intermittent showers going forward are not expected to materially affect mining operations.
Alternate transport mode offered
With adequate coal stocks available across CIL’s subsidiaries, the company has offered power plants having Fuel Supply Agreements (FSAs) with CIL and its subsidiaries the option to lift additional coal through road mode, including quantities over and above applicable Annual Contracted Quantities.
The additional road movement is being offered alongside the existing rail mode, in accordance with the applicable provisions of the respective FSAs.
CIL said loading is expected to improve further over the coming days as dry spells set in, with close monitoring being maintained to sustain the momentum in production and supplies.