CIL output to stay flat in FY11, profit to rise

Coal India (CIL) production is expected to be down marginally at about 430 million tonne this fiscal over the last year's but profit would jump to close to Rs 11,000 crore, a top company official said today.

"The production will be less by 1 million tonne over previous year," CIL acting chairman NC Jha said here on the sidelines a function here.

However, despite de-growth in production as against 6.8% rise in production in 2009-10, the company is looking forward for jump in net profit to close to Rs 11,000 crore, Jha said.

In 2009-10, net profit was at Rs 9,830 crore.

With the hike in coal price and higher realisation from e-auction of coal, the coal behemoth is confident for registering higher profit.

The company had blamed environmental clearances and restrictions for many new coal mining projects.

On the after-effects of the Japan earthquake, Jha said this could lead to an increase in demand of coal as there might be some slowdown in the nuclear energy sector.