Coal India may be staring at massive demand shortfall going forward, after two years it may come down upto 58%

World's largest coal producer Coal India may be staring at a massive demand shortfall going forward, according to an internal assessment report prepared by the Coal Ministry, which has been seen by CNBC-Awaaz. Assessment report has pegged the demand for coal from existing buyers to sharply drop by as much as 20 to 58 percent after 2 years, as the captive coal blocks with buyers begin production. Commenting on the report a senior coal ministry official, on the condition of anonymity, says, "it will be challenging for Coal India to sustain the momentum of coal demand in future"

According to the assessment report prepared by ministry of coal, Coal India supplies a total of 691.26 MT coal to its top top 50 power and top 50 non-power buyers, many of them possess rights to total 404.56 MT worth of coal capacity as captive mines.

Commenting of the assessment report a senior Coal Ministry official says ''Few of them have started production from their captive coal block but after around two to three years coal production from their captive coal block will start to peak rated capacity (PRC)."

Report finds top 50 power sector buyers bought 614.24 million ton coal from Coal India in 2022-23. Out of these, 19 power buyers got their own captive coal block, which total PRC is 242.24 million ton. Its includes captive block of NTPC and its subsidiaries of toal 45.72 million ton PRC, Maharashtra state Power Generation Co's Gare Palma Sector-2 of 23.6 million ton PRC and Jindal Power's four block of Gare Palma and two block of Utkal of 42.62 million ton PRC.