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CIL Coal Production Likely to Miss Target by 55-75 Million Tonne - ICRA

Coal News - Published on Wed, 09 Oct 2019

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Icra Ratings said that Coal India Limited’s production is likely to fall short of its current year target by around 55-75 million tonnes. CIL has registered a YoY production de-growth of 23.5 per cent in September 2019, as operations were impacted by flooding of key mines due to heavy rains and labour issues. The firms production target for the current fiscal is 660 million tonnes. Thus in order to achieve the targeted annual coal production or come anywhere close to the annual guidance, CIL would have to step-up to an average run-rate of 2.3 million tonne coal production per day for the rest of the year. This looks an unlikely task, given that in recent times the central miner has been able to briefly sustain at the 2 million tonne per day average coal production rate only in the months of March 2018 and March 2019.

In the H1 of the current fiscal, the central miner’s coal production witnessed a de-growth of 6.0 per cent YoY, in stark contrast to the healthy production growth of 7.0 per cent achieved in FY2019. Consequently, fully recovering the lost ground during the second half would be extremely challenging.

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Posted By : Rabi Wangkhem on Wed, 09 Oct 2019
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