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| Coal India records 20% drop in profit before tax |
| Press Trust of India / Kolkata Oct 06, 2009, 17:26 IST |
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State-owned Coal India (CIL) has recorded about 20 per cent dip in profit before tax (PBT) in the first half of the current financial year due to wage and salary revision.
"CIL has recorded a PBT of Rs 3,600 crore (provisional) in the first six months of 2009-10. Last year, the company posted PBT of Rs 4,484 crore during the same period," CIL Chairman Partha S Bhattacharyya said at a press conference here.
CIL, Bhattacharyya added, recorded a drop in profitability as the wage and salary revision was not neutralised in the absence of coal price rise.
Bhattacharyya, however declined to comment on the timeframe of rise in coal price, saying that CIL continues to be in profit while there is no rise in coal price.
During the first half of the current fiscal, CIL achieved 9.9 per cent growth in production. The company produced 184.44 million tonne (MT) during the period compared 167.8 MT in the previous year.
The CIL chairman said the decline in production in underground mines was a cause for concern this year. The underground mines recorded a decline of 0.31 per cent in production.
Bhattacharyya, who recently visited the US as part of a coal ministry delegation, said talks were held with coal mining companies there for strategic partnership with CIL.
He said that by entering strategic partnership "we will find an effective way to bring coal and bridge the demand-supply gap. This route will lead to something concrete."
Last year 59 mt of coal was imported to the country.
On coal supply to power stations, Bhattacharyya added 11 power plants have received less than 90 per cent coal from CIL.
Of these, five, including Bakreswar thermal power, Sagardighi, Titagarhm DPL and Mazaffarpur have not made arrangements to lift coal from the Mahanadi Coalfield.
Three other power stations Bandel, Koradi and Kaparkhera face consistent unloading problem.
Lehara Muhabbat in Punjab and Tanda in UP, besides a private power station has less than 90 per cent supply, he said.
Moreover, Bhattacharyya added, law and order problem in Jharkhand and non-availability of trucks during the Lok Sabha election led to lower supply.
As per fuel supply agreement between CIL and power stations, power plants pay penalty if they lift less than 90 per cent coal. Similarly, CIL pays penalty if it fails to supply less than 90 per cent coal.
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