The Hindu Business Line : Singareni expects output to touch 43.6 mt by March

Hyderabad, Jan. 1 Singareni Collieries Company Ltd (SCCL) expects its coal production for the current financial year to grow 7.38 per cent to around 43.6 million tonnes (mt) against 40.6 mt achieved last year.

For the next financial year (2009-10), SCCL has set a production target of 50.4 mt.

“Though the original production target set was 41.5 mt it was later revised to 42.5 mt, but looking at the current trend we expect to close the year with a production level of 43.6 mt,” Mr S. Narsing Rao, Chairman and Managing Director, SCCL, said while addressing a press conference here on Thursday.

SCCL’s production up to the end of December was at 32.65 mt against a target of 30.36 mt. Its coal production witnessed an 8.5 per cent growth over the corresponding period of the previous year.

“The company dispatched 32.35 mt of coal up to December 2008. Of this, 73 per cent (23.52 mt) was dispatched to the power sector. Of which 21.8 mt to power utilities and 1.72 mt to captive power units,” Mr Rao said.

He added that coal dispatches to APGENCO power stations stood at 8.72 mt against the fuel supply agreement of 7.16 mt during April to December 2008, an increase by 7 per cent over the corresponding period of the previous year.

SCCL’s coal supplies to NTPC also increased during the period and the latter were supplied an additional 1.6 mt.

“There has been a shortfall of supplies to two customers — Karnataka Power Corporation Ltd and Maharashtra State Power Generation Company Ltd. We are trying to fulfil this during the current quarter,” Mr Rao said.

The company through the e-auction route sold 1.73 mt earning it additional revenue of Rs 204 crore during April to December period.

Mr Rao said the cumulative provisional profit after tax is estimated at Rs 162.29 crore against the original target of Rs 73.09 crore till end of December 2008.

Mr Rao, however, said that due to the global economic slowdown there will be some impact on the company’s bottomline.

“The average decline during December was around Rs 20 crore so taking the next three months into consideration we expect profits to be lower by around Rs 80 crore against the original budgeted profit of Rs 360 crore. But there would be no reduction in the capital investments,” he said.

He also said that the clearances for the company’s 600 MW plant in Adilabad district were in the final stages of approval and expects to get the approvals in a month. “We expect to commission the first phase in about 36 months from the time construction starts and the investment is Rs 2,960 crore,” he added.