Coal India Output and Dispatch Set to Accelerate as Monsoon Effect Wanes
Published: Sep 07, 2026
By TIOLCorplaws News Service
NEW DELHI, SEP 07, 2026: AS the intense rains over coal command regions show clear signs of easing, coal production and supplies at Coal India Limited (CIL) are gathering pace and are set to improve further from here on. Despite prolonged spells of rain through July and August, particularly across the East-Central parts, CIL maintained a steady supply run. During April-August of the current fiscal, CIL supplied 322.90 million Tonnes (MT) of coal, 6.70% higher than the 302.60 MT supplied during the corresponding period last year.
The easing rainfall is already bringing relief on the ground. Coal beds that had turned sticky and wet after prolonged rain exposure are now drying out, making freshly mined coal free-flowing and considerably easier to transfer, handle and dispatch through Coal Handling Plants (CHPs). Coal seams at lower mine horizons that had been submerged are being restored to production through augmented pumping, while repair of internal haul roads is progressing in full swing.
Mines across CIL are consequently stepping up preparations to return to full operational pace, with the focus firmly on ensuring that production and coal movement pick up quickly as ground conditions continue to improve. While average daily coal production during the rain-affected first three days of September stood at around 1.36 MT per day, it rose to approximately 1.7 MT per day on 04.09.2026, even with just a single day's respite from rain.
Overburden Removal (OBR) - a key indicator of coal bed exposure and future production readiness - has also started gaining momentum. Average daily OBR during the first three days of September stood at 2.5 Million Cubic Metres, improving to 4.1 Million Cubic Metres on 04.09.2026. This improvement in OB removal, together with drying mine conditions, is expected to lend further impetus to production and supplies in the days ahead.
CIL supplied 60.60 MT of coal in August FY 2026-27, registering a 5.50% increase over supplies in August last year. Supplies to the power sector in August 2026 also rose 4.5% to 48.46 MT, compared to August 2025. CIL continues to hold 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, at around 1.35 MT over the first three days of September, has since improved to 1.5 MT on 4th September. Driven by the coal fraternity's commitment to the larger national cause, dispatch to evacuation points is set to see a marked step-up in the coming days through enhanced production and transportation.
With drier conditions setting in, geo-technical concerns around dump and bench stability - and the associated safety risks that intensify during rain - stand considerably reduced, allowing the workforce to operate unhindered at ground zero. To ensure a streamlined flow of coal, CIL subsidiaries have used the lean period to augment their CHP-Silo mechanisms, and with the dry season approaching, rail tracks at loading points and yards are being cleared. Companies such as NCL and SECL have also created additional crushing capacity that will prove valuable in the near term.
The spell of incessant rain has largely passed, and any intermittent showers going forward are not expected to materially affect mining operations.
Alternate modes offered to augment supplies
In view of the availability of adequate coal stock at various sources across the subsidiary companies of Coal India Limited (CIL), and with a view to augmenting coal supplies to the power sector, CIL has offered power plants having Fuel Supply Agreements (FSAs) with Coal India Limited and its subsidiaries to lift additional quantities of coal, including quantities over and above the applicable Annual Contracted Quantities, through road mode, in addition to the existing rail mode, as per the applicable provisions of their respective Fuel Supply Agreements.
With dry spells setting in, loading is expected to pick up further over the coming days. Close monitoring is being maintained to sustain this trend.
