Data from India’s coal ministry shows that between April 1 and August 25, the country’s total domestic coal production increased by 7.12% year-on-year, reaching 370 million metric tons. This move by OCPL suggests an oversupply of coal alongside decreased demand, according to Riya Vyas, a senior analyst at iEnergy Natural Resources Ltd. Vyas explained that coal-fired power plants are currently experiencing lower electricity demand, while domestic production has risen as monsoon rains subside.

India’s coal production reached a record high of 997.828 million tons in the fiscal year ending March 31, marking a 12% increase from the previous year. Despite 75% of India’s power generation being coal-based in 2023, the country imported 176 million tons of thermal coal, primarily for power plants. However, thermal coal imports are expected to decline this year for the first time since the COVID-19 pandemic, owing to increased domestic production and historically high inventories.