Coal India shares climb 5% as summer electricity demand spikes

crypthub

1 day ago

CIL Stock Movement

Coal India Ltd’s shares climbed this week as investors expect a summer surge in power demand. On Friday the price fell to ₹462.30 from ₹470.10, marking a modest intraday dip. Despite the slip, the stock remains up nearly 5% over the last five trading sessions. The movement reflects broader optimism about higher electricity consumption.

India's Coal Dependency

India ranks second globally in both coal production and consumption, importing about 15% of its use. Coal still generates roughly 70‑87% of the nation’s electricity, even as renewable capacity expands. CIL supplies more than 80% of domestic coal, positioning it at the center of the anticipated demand rise. Anticipated hotter temperatures and tighter gas supplies are expected to push power usage higher.

Government Response and Outlook

The government predicts increased summer demand from electric cookers and battery‑powered infrastructure. LPG allocations prioritize households, with essential non‑domestic sectors such as hospitals receiving limited supplies. The Coal Ministry reports a total stock of 210 million tonnes, enough for about 88 days of consumption. Projected FY 2025‑26 coal use is slated to stay below current production, signalling readiness for a demand spike.