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CIL may miss output target - Report

Coal News - Published on Tue, 02 Jan 2018

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Business Standard reported that despite state-owned Coal India raising its daily average output to touch 1.8 million tonnes, which is likely to scale up further to 2 million tonne shortly, the coal behemoth is likely to miss its annual production target of 600 million tonne for 2017-18. Analysts said at its best, Coal India would during December-March be able to mine 240 million tonne of coal, which would take the total production to around 570 million tonne, 5 % short of the target.

Mr Rupesh Sankhe, research analyst with Reliance Securities said that “It is most likely that there is going to be a 25-30 million tonne production shortfall. In the recent past, the company has been missing its targets.”

During the first eight months of the current financial year, the company was able to produce 329.31 million tonne, or 55 %, of the 600 million tonne target. Production of the remaining 45 % in a four-month timeframe will be a tough task for the miner.

Coal India executives, however, are optimistic about the increase in production and aim to cross the 2 million tonne target set by the coal ministry. However, the company faces serious law and order and land availability issues, environmental clearance delays and lack of evacuation infrastructure in its key Mahanadi Coalfields and Central Coalfields areas which may cap its production capacity.

Even when demand for coal peaked during October-November as the country’s power plants faced coal starvation, Coal India was able to complete 93 % of the targeted 49.47 mt in October and failed to meet the target of 54.91 mt by 7 % in November.

Source :

Posted By : Nanda Koijam on Tue, 02 Jan 2018
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