CIL's production, offtake grow 9% during Apr-Dec

Production of fossil fuel grew to touch 373.45 million tonnes during the first three quarters

While Coal India Limited (CIL) fell short by three per cent in both its production as well as offtake target during April-December 2015, the company was able to register growth on both the fronts by nine per cent when compared to corresponding period of 2014-15.

Production of the fossil fuel grew to touch 373.45 million tonne (mt) during the first three quarters of the ongoing financial year, though it missed the 383.08 mt target.

“The heavy monsoon this year has taken a toll on the production apart from the impending issues with forest and environment clearances in some pockets,” a senior CIL official told Business Standard

Last year, during April-December, against the target of 353.47 mt of coal output, the company had produced 342.39 mt of the fossil fuel.

Its two major subsidiaries – Mahanadi Coalfields (MCL) and South-Eastern Coalfields (SECL) – fell behind by six per cent and three per cent, respectively, against the respective targets of 97.40 mt and 96.16 mt. Nevertheless these companies achieved 11.8 per cent and 6.6 per cent growth during the April-December timeframe.

Northern Coalfields (NCL), another subsidiary, which had a 55.44 mt output target was, however, successful in completing the projected mark overachieving it by three per cent at 56.48 mt of coal.

Central Coalfields (CCL), with a moderate 39-mt target, also stepped up to achieve it by six per cent at 41.44 mt.

The demand for coal also suffered three per cent against the projected target, owing to the coal stock remaining with the power companies.

“The demand of coal from the power plants has remained subdued because of which the offtake target could not be completed,” the official said.

According to the report of Central Electricity Authority, in December coal stock with power utilities has increased to 28.25 mt, which is equivalent to 21 days’ requirement, as against the corresponding level of 11.46 mt (equivalent to eight days’ requirement) in the same month of 2014.

Nevertheless, when compared to the last year’s April-December offtake of 354.60 mt, the same in 2015 increased by nine per cent at 389.29 mt.

Besides, so far on the power utility offtake front, against the projected supply of 430 mt of coal, Coal India has already achieved 90.53 per cent of the projection at 389.29 mt.

According to the ministry's annual plan for 2015-16, the coal demand has been assessed to be 910 mt against which supplies from indigenous sources had been planned at 699.97 mt. CIL will account for 550 mt of this demand, while Singareni Collieries Company Limited will make-up for 56 mt and the rest 93.97 mt demand will be met by other sources, including captive blocks.

The remaining shortfall of 210.03 mt is envisaged to be met through imports by consuming sectors.

A MIXED BAG: HITS AND MISSES

• Production of the fossil fuel touched 373.45 mt during the first three quarters of the ongoing financial year, though it missed the 383.08 mt target
   
• On the power utility offtake front, against the projected supply of 430 mt of coal, Coal India has already achieved 90.53 per cent of the projection at 389.29 mt