THEBUSINESSBYTES
BUREAU
NEW
DELHI, OCTOBER 5, 2026
Coal India Ltd (CIL)
has significantly strengthened coal supplies to the power sector in the first
half of the current fiscal, with higher offtake, improved evacuation and better
utilisation of pithead stocks helping reinforce the country’s energy-security chain
amid rising electricity requirements.
CIL, which supplies
nearly four-fifths of its coal to the power sector, recorded total coal offtake
of 384.2 million tonnes (MT) during the first six months of FY 2026-27, up 7.6
per cent from 357 MT in the corresponding period of the previous fiscal.
The improvement
gathered pace in the second quarter, when CIL’s offtake rose 12.05 per cent to
186.04 MT from 166.04 MT in Q2 of FY 2025-26. In September alone, total coal
supplies increased 12.5 per cent to 61.20 MT from 54.40 MT a year earlier,
signalling a sustained strengthening of the supply pipeline.
The company also
liquidated around 63 MT of pithead coal stocks during the first half of the
fiscal, enabling it to augment current production with inventory and maintain
supplies while production progressively ramped up after the monsoon period.
The power sector
remained firmly at the centre of CIL’s distribution strategy. During H1 FY
2026-27, coal despatches to power plants rose 6.1 per cent to 302.8 MT from
285.4 MT in the year-ago period. This means nearly 79 per cent of CIL’s total
offtake during the period was directed towards power generation.
The momentum was
particularly visible in the second quarter, with power-sector supplies rising
11 per cent to 148.20 MT from 133.50 MT in Q2 FY 2025-26.
September saw another
strong supply response. CIL’s power-sector supplies increased to about 48.9 MT
from 44.20 MT in September 2025, marking a rise of 10.63 per cent. Overall coal
supplies during the month rose by 6.8 MT, or 12.5 per cent.
The intensity of the
supply effort was also reflected in daily despatches towards the end of
September. Power-sector despatches touched 1.74 MT, 1.79 MT and 1.71 MT on
September 28, 29 and 30, respectively. The strong throughput continued into
October, with daily supplies of 1.75 MT, 1.87 MT and 1.81 MT recorded during
October 1-3.
The sustained flow of
coal from mines to power plants comes at a time when domestic coal-based
electricity generation has also recorded a notable improvement. Generation from
domestic coal rose to 640.05 billion units (BU) during H1 FY 2026-27, compared
with 582.5 BU in the same period last year, representing an increase of about
57.5 BU, or 9.9 per cent.
The figures underline
the growing importance of synchronising production, inventory, evacuation and
consumer demand rather than viewing each component of the coal supply chain in
isolation.
CIL’s distribution
architecture has also evolved beyond a predominantly linkage-based framework,
with Fuel Supply Agreements and linkage mechanisms continuing to anchor
power-sector requirements while other market-based channels provide flexibility
for short-term needs.
Linkage
rationalisation, digital systems, consumer-facing portals and improved
logistics have further enhanced the responsiveness of the distribution network,
allowing coal supplies to be aligned more closely with the requirements of
power producers.
Adequate pithead
stocks have emerged as an important buffer in this system. Inventory available
at the beginning of the financial year provided CIL with the flexibility to
sustain supplies even as mining operations were affected by the monsoon and
production was subsequently stepped up.
Going ahead, the
focus is shifting from simply increasing coal offtake to ensuring assured,
predictable and quality-conscious supplies. CIL is investing in First Mile
Connectivity, rapid loading systems and digital monitoring to make the movement
of coal faster and more reliable.
The company currently
has 46 CHP-silos with a combined mechanised close-loop evacuation capacity of
432 MT. It is also considering additional CHP-silos at upcoming greenfield
mines, a move aimed at further strengthening evacuation capacity and reducing
dependence on conventional coal-handling systems.
For CIL, the measure of performance is increasingly extending beyond the volume of coal mined to how reliably that coal reaches consumers and how effectively it supports electricity generation.
With production expected to build up after the monsoon, evacuation infrastructure expanding and the power sector remaining the principal focus of distribution, the strengthening of CIL’s supply chain is emerging as an important component of India’s broader energy-security strategy.
