State-run Coal India’s annual production and sales reached 600 million tons for the first time, driven by demand from power producers last month. Output at the world’s largest coal producer increased to 9.6% to 79.2 million tons in March, its highest monthly volume ever reported, while sales grew 7.8% to 59.6 million tons, the company said. Annual coal output reached 607 million tons and sales reached 608 million tons.
The company had a target production of 610 million tons for the fiscal year, which ended on March 31. Morgan Stanley had estimated the company would produce 594 million tons of the fuel during the year.
Coal India has a goal to reach annual output of 1 billion tons. It hopes to reach that goal by 2026.
Analysts said strong production in March was aided by the growth recovery at key units Mahanadi Coalfields and South Eastern Coalfields, which account for half of coal India’s volume, as reported by Nikkei Asian Review. Better availability of rakes also increase the offtake, the news source said.