Coal India's April 2026 total despatch falls 0.38% YoY to 64.28 MT; power sector offtake dips 1.35% to 50.29 MT
Coal India Limited’s provisional April 2026 statistics show a measured start to FY2026-27.
Total coal despatch for the month stood at 64.28 million tonnes.
This was marginally lower than 64.53 million tonnes in April 2025.
The year-on-year decline was 0.38%.
The despatch number indicates that supply to consumers remained broadly stable despite a sharper decline in production.
Coal India’s total production stood at 56.06 million tonnes in April 2026.
This compares with 62.06 million tonnes in April 2025.
The decline was 9.67% year-on-year.
The gap between production and despatch was bridged by drawdown of pithead and mine-mouth stockpiles.
These stockpiles had been built up during preceding months.
Power sector offtake remained the dominant demand category.
Coal supply to the power sector stood at 50.29 million tonnes.
This was down 1.35% year-on-year.
The power sector accounted for approximately 78% of Coal India’s total despatch during the month.
This confirms the continued dependence of India’s thermal generation fleet on Coal India supplies.
The modest decline in power sector offtake comes at a time when solar and wind generation are rising.
Renewable energy is increasingly displacing coal-fired generation during daylight hours.
This shift is especially visible in states with high renewable penetration.
These include Rajasthan, Gujarat, and Karnataka.
Thermal plants in such states are increasingly operating at lower plant load factors during solar hours.
However, they still remain important for morning and evening peak demand management.
The April data suggests that Coal India used inventory to maintain despatch continuity.
Production fell much faster than despatch.
This implies planned or operational stock drawdown.
Such a strategy can support consumers during periods of lower mine output.
However, sustained production weakness would require careful monitoring if summer demand rises sharply.
Coal India’s fiscal contribution to government revenues remained strong.
Total government exchequer payments stood at Rs. 2,798.80 crore in April 2026.
Royalty payments alone stood at Rs. 876.22 crore.
This represented a 4.80% year-on-year increase.
The increase in royalty despite lower production reflects escalation in the ad valorem royalty computation base.
Coal India’s payments are important for coal-producing states.
Royalty, District Mineral Foundation contributions, and National Mineral Exploration Trust contributions provide significant fiscal support.
These payments help state governments fund local development and mining-area welfar
Coal production therefore remains important not only for energy security but also for state finances.
Coal India’s FY27 production guidance stands at 838 million tonnes.
The April performance suggests early-year challenges.
These may include scheduled mine maintenance and monsoon preparedness activities.
However, thermal power station coal inventories remain above critical thresholds at most plants.
This provides a buffer against short-term despatch variability.
Coal demand is expected to recover seasonally from May onward.
Air-conditioning loads typically push power demand higher during summer.
Solar can meet a large part of daytime demand, but coal remains essential for evening peaks and grid balancing.
The key monitorable will be whether Coal India can raise production momentum while maintaining steady despatch to power plants.
For more such stories, go to Click here
