Coal output fell to 39.20 million tonnes in June, compared with 44.95 million tonnes in the same period the previous year, the Coal India said in a filing to stock exchanges.
Coal India Ltd reported a 12.8 percent fall in production in June, reflecting the third straight month of decline in output as national coronavirus lockdowns cut demand for the fuel.
Coal output fell to 39.20 million tonnes in June, compared with 44.95 million tonnes in the same period the previous year, the Coal India said in a filing to stock exchanges. Offtake by customers, such as power generators, fell to 41.61 million tonnes in June.
The world's largest coal miner, which wants to produce 1 billion tonnes of coal by 2023/24, saw its annual production fall during the year ended March 2020, marking the first such decline in over two decades.
India used nearly a billion tonnes of coal in 2019/20, about three-quarters of it at power plants. State-run Coal India accounts for over 80 percent of the country's production.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Provisional government data on Wednesday showed electricity demand fell 9.9 percent in June, suggesting a recovery amid greater consumption in industrial western states as India slowly lifts restrictions and allows factories and offices to operate.
However, analysts expect power usage during the current financial year to fall for the first time in decades. Utilities have refrained from purchases of coal amid stockpiles expected to last for weeks and Coal India's own inventory hitting record highs.
With India ramping up usage of hydro electricity and solar power and cutting down on coal use for electricity generation this year, demand for coal might remain tepid.
Shares of Coal India, which closed marginally higher on Wednesday, have lost over a third of their value, more than twice the 14.3 percent decline in the broader Nifty 50 index.