CIL maintains 652mn tn output aim in FY19; govt's OFS opens

Coal India Ltd on Wednesday maintained that its production target would be 652 million tonne for fiscal 2018-19, even as the government embarks on an OFS programme to sell 3 per cent stake in the mining behemoth.

The Centre's two-day offer for sale (OFS) at a floor price of Rs 266 a piece opened for bidding by institutional investors on Wednesday, with a subscription of over 24 per cent shares on offer in initial hours of trade.

The stake sale is expected to fetch about Rs 5,000 crore to the exchequer.

"This year, we are aiming for 652 million tonne production and 681 million tonne dispatch of coal," CIL Chairman A K Jha said at the CII-organised Global Mining Summit here.

At the state-owned PSU major's AGM earlier this year, Jha had said this target was "aspirational".

In the last fiscal, the miner produced 567 million tonne of coal and dispatched 580 million tonne.

The government had last sold 10 per cent stake in CIL through an OFS in January 2015, mopping up about Rs 23,000 crore.

It currently holds 78.32 per cent stake in the miner.

Speaking about higher productivity, the top CIL official said it would require higher technological intervention.

"Until and unless we go for hi-tech options, it will not be possible to give a desired level of production. For that, international cooperation is needed as well," Jha said.

He said it is also the responsibility of the mining major to ensure minerals are extracted with minimal harm to the environment.

Jha added that despite its double digit growth, demand is growing "leaps and bounds" and Coal India is making efforts to meet this surge in requirement.