Neutralising negative growth, Coal India poised for output ramp-up
State-owned Coal India Ltd (CIL) for the first time in the current fiscal on October 20 neutralised the negative growth in coal production for the year.
The coal production of 265.69 million tonnes (MTs) on October 20 was at level with last year’s output on the same date with the company posting a marginal 0.04 MT increase in volume terms, CIL said in a statement.
CIL arm Mahanadi Coalfields Ltd with progressive coal production of 71.17 MTs, on Wednesday, which is a 9.61 MT increase on year-on-year comparison and Northern Coalfields Limited at 60 MTs logging a jump of 3.15 MTs during the referred period have played catalytic role in wiping off CIL’s negative production trend, it said.
Also, what made this possible was that beginning August, CIL began posting strong growth in production and offtake.
“Scripting a new high the company recorded the highest-ever production and offtake growth in September 2020, clocking 31.6 per cent and 31.7 per cent, respectively. For October as well till 20th, CIL recorded around 20 per cent growth in output and 24.3 per cent in offtake,” it said.
From now on ramping up coal production would not be a problem especially with coal seams exposed, and ready for production, due to a phenomenal growth of 71 per cent in over burden removal in September, and 22.3 per cent during first half of the fiscal, a senior executive of the coal behemoth said.
CIL, induced by COVID-19 stifled slowdown during the first quarter of FY’21, suffered 11.6 per cent growth constriction in production and 21.5 per cent slump in offtake.
“Considering this huge setback, the company came back strongly in expunging the negative trend in output in October 20,” the PSU said.
With the industrial and commercial activity picking up from July onwards and demand for coal showing signs of improvement, CIL could shrug off the Q1 tepid growth and clocked a robust 10.6 per cent production increase and near 10 per cent growth in offtake during second quarter of the present fiscal compared to Q2 of FY’20.
Coal offtake till October 20 of the current fiscal at 287.19 MT is trailing by 4.9 per cent compared to same date last year.
“However, we are confident of removing the negative trend in coal offtake by November and grow from there on especially with thermal power plants and non-regulated sector customers showing keenness to lift increased quantities of coal. There is also a spike in the auction sale,” the executive said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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