InvestorQ : Is it true that Coal India is again going to fall short of its production targets this year also, and what that means for power producers?
Riya Dwivedi made post

Is it true that Coal India is again going to fall short of its production targets this year also, and what that means for power producers?

Answer
image
2 years ago
Follow

There are some concerns that Coal India Ltd may fall short of its 660 million tonne (MT) production target for the fiscal year 2019-20. However, as a precautionary measure Coal India has made plans to ramp up daily output to get closer to the goal. Till the end of this calendar year, Coal India is expected to produce close to 390 MT of coal and will need to produce another 270 MT in the last quarter between January 2020 and March 2020 to be able to meet its production target. Actually, Coal India currently produces 1.8 MT per day while the production rate needed to achieve the target is 2.9 MT in the last quarter. That will be a challenge although Coal India has planned to raise its production to 3 MT per day in February and March to get closer to the target.

If one looks back at the data for the current fiscal, then CIL produced 330 MT of coal during April-November which is nearly 7.8% lower than the corresponding period production a year ago. Now CILI needs to increase its daily production to 2.5 MT per day from January to March to get anywhere close to the target. In the previous fiscal year 2018-19, Coal India produced 606.89 MT while dispatch was at 608.14 MT. However, off take of cola is expected to have gone up sharply in December although the actual data will be known only when the final official data comes out.

1 Views