Coal India sees production growing 6.7% next fiscal

Coal India Ltd (CIL), the Kolkata-based world's largest coal miner, sees its output growing 6.7% to 507 million tonne (MT) next financial year (2014-15) beginning April 1.

The company is budgeting for around 32 MT incremental output next year. Constrained by delays in environmental clearances for capacity expansion, CIL is likely to produce 475 MT in the current year as against the original target of 482 MT.

Apart from production, the miner has signed a Memorandum of Understanding (MoU) with its parent, the Coal Ministry, promising 520 MT off-take of raw coal during the year, Chairman and Managing Director (CMD) S Narsing Rao said. The state-owned company alone produces 82% of the domestic coal output of 557 MT against the requirement of 690 MT annually.

Over 75% of its coal is consumed by power sector companies.While output has been under pressure, an ongoing slump in the demand for power has led to massivebuild-up of coal stocks at the 100-odd coal-based thermal power stations in the country.