Coal India likely to miss output target for 2015-16 by 10 mt

Company cites delay in forest and environment clearances, monsoon for anticiapted shortfall in output

After missing its production target for the past seven months, Coal India might eventually end the financial year with a shortfall of 10 million tonnes (mt), or nearly two per cent, of its marked output.The company had targeted about 550 mt. But due to several issues, the production might fall short by about 10 mt, officials said. “The major problem is delay in getting forest and environment clearances. We are not able to step up production on these grounds,” a senior company official told Business Standard.

The rainy season had also impacted production, particularly in the mines of South Eastern Coalfields Ltd (SECL),  a Coal India subsidiary, he added. SECL's yield fell behind by five per cent while production of Coal India and all its subsidiary units lagged four per cent by 4.55 mt, during June-August. The following three months of September-November also saw a shortfall of 4.64 per cent in its total output. Another official in the company said, acquisition of land was a key issue plaguing another of its key subsidiary – Mahanadi Coalfields.

“We are not getting enough cooperation from the Odisha government,” another official told Business Standard.

These two subsidiary firms – SECL and MCL – are poised to play a key part in the country's objective to attain one billion tonne of coal production by 2020.

According to the union mining ministry’s roadmap, the targeted output in the given timeframe from SECL is 240 mt and about 250 mt from MCL. This year so far, both of them have lagged behind the target.

Against the target of 89.85 mt of coal from April-November this year, MCL was able to achieve 92.95 per cent of the same at 83.52 mt, while SECL fared better to complete 97.51 percent of its targeted output of 85.43 mt of coal.

On the offtake front too, Coal India is faced with a shortfall in its target as 350.2 mt of coal or 97.41 per cent of the marked 350.2 mt could be achieved.

“The thermal plants across the country have enough stocks of coal at the moment”, the official said adding that it was a primary reason for the lag in offtake.

During April-November this year, Coal India had targeted an offtake of 350.2 mt of coal but was able to complete 341.12 mt.

“Power demand is not growing and hence the requirement of coal is also not jumping”, he added.

The company is confident to perform well during January-March 2016, as major equipment deployment and other evacuation means are on course, whereby at least another 304 mt can be further mined out during the last two quarters of the current financial year.