Coal demand continued to outstrip domestic supply in India for the month of September, as power demand increased further in the country.

Care Ratings, in its report, said power consumption for the period August 2021 and September 2021 increased from 106.6 BU per month in 2019 (pre-COVID year) to 124.2 BU per month in 2021. 

Meanwhile, coal production in the country's biggest companies, Coal India Ltd. (CIL) and  Singareni Collieries Company Limited (SCCL),  both decline in September, at around 4% and 10%, respectively. 

The analysts said the decline in coal production was due to sharp increase in international coal prices and freight rates, and the emergence of of the monsoon season.

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