Coal India Plans To Increase Supply To Power Plants; Stock Gains 1%

Share price of Coal India gained around one per cent on Thursday, September 30, a day after the state-owned enterprise announced that it plans to ramp up its supply output to power plants. On Thursday, Coal India opened on the BSE at Rs 188.25, swinging to an intra day high of Rs 191.50 and an intra day low of Rs 184.55, in the trading session so far.

Coal India seeks to boost depleting stocks as many power plants across the country face an acute shortage of coal. The country's power demand - more than 70 per cent of which is met by coal, increased 13.2 per cent in the first eight months of 2021, after declining for the first time in over three decades in 2020, according to news agency Reuters. 

The country's largest coal mining firm supplied about 243 million tonnes of coal to utilities from April 1 to September 28 - 24 per cent higher than the same period last year and up 11 per cent compared with April-September 2019. 

"Despatches to coal-fired plants from October onwards are aimed at 1.5 million tonnes per day and beyond 1.6 million tonnes in due course," said the coal mining and refining company in a statement yesterday. 

Coal India accounts for more than 80 per cent of the country's coal output and is also India's largest producer of dry fuel.

On the NSE, Coal India opened at Rs 187.60, registering an intra day high of Rs 191.50 and an intra day low of Rs 184.55, in the session so far. It was last trading 0.54 per cent higher at Rs 186.70 on the NSE. 

Shares of Coal India were last trading 0.22 per cent higher at Rs 186.15 on the BSE.