Coal India Ltd.’s production and shipments in November rose to the most for the month in at least five years, as power plants procured more coal to boost inventories.
The Kolkata-based miner’s output has increased year-on-year for the past four months following a reduction in its own stockpiles and a surge in demand from power plants, its biggest customers. Coal India’s stockpiles had more than halved since the start of this fiscal year to 31.3 million tons as of Sept. 30, compared with 68.4 million tons on March 31.
“Power plant inventories have started inching up, but there’s still some distance to go,” said Rupesh Sankhe, an analyst at Reliance Securities Ltd. in Mumbai. “That gives an assurance that demand for Coal India is likely to remain strong in the coming months.”
Story by Rajesh Kumar Singh.