CIL working to achieve 9% production jump this FY

The company overcome a two year-long stagnation in output by pulling up production by 6.5% to 452 MT last year

The world’s largest coal miner Coal India Ltd (CIL) is planning to achieve 9% growth in output this financial year. This would help ramp up production in key industries in the fuel-starved power, steel and cement sectors.

“We will increase our production to 492 million tonne (MT) this financial year. This would be a 9% jump over the achievement last fiscal and we are confident of achieving it,” CIL Chairman S Narsing Rao told Business Standard after a performance review meeting with coal minister Sri Prakash Jaiswal.

The Bombay Stock Exchange (BSE)-listed company had produced over 452 MT coal in 2012-13 against a target of 454 MT. The marginal drop occurred owing to last minute glitches in mining including a workers’ strike, according to the company.

The company had successfully overcome a two year-long stagnation in output by pulling up production by 6.5% to 452 MT last year. This was despite delayed green clearances holding back approvals for new projects.

Earlier in the day, power minister Jyotiraditya Scindia met Jaiswal to discuss the ongoing issue of coal quality between CIL and power generator NTPC Ltd. Scindia did not share the details of the discussions except to say that official level meetings will be held soon.

“Efforts are being made to resolve the issue. There are issues with regard to quality of coal and outstanding dues both on our side and on the side of the coal ministry. I intend to resolve this after looking at the coal ministry’s note on the subject,” Scindia said.

The issue relates to NTPC’s complaints that CIL supplies low grade coal while billing for higher grade. CIL completely denies the allegation.