Core signals: Coal output growth at six-month low in December

But a 5.6% sequential rise in dispatches to end-users suggests electricity output may have recovered from November’s lows

Updated - January 02, 2024 08:18 pm IST

Published - January 02, 2024 08:17 pm IST - NEW DELHI

NEW DELHI, 06/05/2022: A coal-laden goods train passes through the Faridabad railway station, in New Delhi on May 06, 2022. Photo: Sushil Kumar Verma / The Hindu

NEW DELHI, 06/05/2022: A coal-laden goods train passes through the Faridabad railway station, in New Delhi on May 06, 2022. Photo: Sushil Kumar Verma / The Hindu | Photo Credit: SUSHIL KUMAR VERMA

India’s coal output growth slid to a six-month low of 10.75% in December 2023, with production levels nearing 93 million tonnes (MT), as per data released by the Coal ministry on Tuesday.

Coal has a weightage of over 10% in the Index of Core Industries, which had slid to the lowest levels since March 2023 in November, with the growth rate slipping to a six-month low of 7.8%. The eight core sectors, which constitute a little over 40% of the Index of Industrial Production or IIP, had grown 12% in October, when the IIP jumped at a 16-month high pace of 11.7%.

The National Statistical Office will release November’s IIP numbers on January 12 and economists expect industrial output growth to have eased to around 7%-8% from October’s surge.

Core sectors’ growth is also expected to slow between December 2023 and February 2024, owing to base effects from the previous year and the coal sector numbers for December back this expectation.

Coal dispatches from mine pitheads to end-users stood at 86.23 MT in December, growing at a milder rate of 8.36% compared to 9% in November. The broadest end-use sector for coal, electricity generation, had seen growth slow from 20.3% in October to a five-month low of 5.6% in November, with power output at its lowest level since March 2023.

Despite the slower year-on-year growth, December’s coal dispatch numbers are 5.6% over November and suggest that electricity generation, which has a nearly 20% weightage in the core sectors’ index, may have bounced back somewhat last month.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.