Despite COVID-19 restrictions in several states, Coal India maintained its output and despatch momentum in May, the second month of the current fiscal, an official said.

The mining major is likely to report dry fuel production of around 41.7 million tonnes and offtake of nearly 55 million tonnes this month as against production of 41.43 million tonnes and sales of 40 million tonnes in the corresponding period last year, the official said.

In April, coal production stood at 41.9 million tonnes compared to 40.4 million tonnes in the year-ago period, recording a growth of 3.7 per cent. Offtake stood at 54.1 million tonnes during the reporting month compared to 39.1 million tonnes in the corresponding period last year, registering a growth of 38.4 per cent.

Coal India had recently said that the pandemic had impacted production on account of a large number of the company’s employees across subsidiaries and contractors testing positive for coronavirus. The Kolkata-based company commenced FY22 with a pithead stock of nearly 99 million tonnes.

However, electricity demand had risen in recent months and the contribution of thermal power had improved, boosting demand for coal. Thermal power meets 78 per cent of the country's power demand. However, there is apprehension that lockdowns may impact subsequent electricity demand from industry.