Coal India Ltd. said its March production fell 1.5% on year, easing the burden of mounting stockpiles it’s been accumulating to meet an expected surge in demand during the summer.
Output dropped from a year earlier to 84.5 million tons, while sales grew 0.7%, the company said in a stock exchange filing on Wednesday.
A mild summer in 2025 and a rare decline in peak electricity demand during the season caused inventories to pile up and forced production cuts by the state miner. Coal demand is now on an upward trajectory on expectations that a scorching summer, and fuel shortages created by the war in Middle East, will revive consumption.
While temperatures are expected to stay relatively mild in April, several parts of the country could see an increase in the number of heat wave days in May and June, according to India Meteorological Department. Cooling appliances such as fans, air-conditioners and refrigerators are among the biggest drivers of power demand in India. Consumption has been robust during the winters too, with more residents using electricity for heating.
India’s government expects maximum demand to reach as high as 283 gigawatts this summer. The nation’s 200 gigawatt-plus coal fleet is likely to shoulder much of that burden.
Coal India’s unsold inventories had risen to a record 106 million tons at the start of April 2025 and have been climbing ever since due to weak sales. Stockpiles had risen to about 121 million tons as of March 9, the coal ministry said in a statement last month.
