Already under watch from several quarters, Coal India Ltd has indicated to its nodal Ministry that it may fall short of nearly 12 million tonnes (mt) from its annual production target of 464.10 mt.
This is because during the October-November period heavy rains and cyclone Neelam pulled down the output.
Besides, October-November are also festival months when most of the workers go on leave, official sources said.
“Coal India is likely to reach production of 451.5 million tonnes,” said a senior Coal Ministry Official, adding that but less output is not likely to impact buyers, especially power producers.
The public sector miner is confident to meet its offtake target of 470 mt. “The shortfall would be met from stocks at the pit head,” the official said. Not meeting the annual production target may hamper the next financial year’s numbers. According to the 12th Plan, Coal India expects to increase its production to 487.65 mt in 2013-14.
When contacted, S. Narsing Rao, Chairman and Managing Director, said there are still more than 45 days left for the financial year to get over. Rao is confident that the miner would inch close to the target and whatever is the gap would be met from stocks.
Coal India has more than 45 mt of coal lying at pit heads.
Production growth
The public sector miner clocked 6.1 per cent growth in production during April-December last year.
It mined 308.89 mt in the first three quarters of 2012-13 against 291.24 mt in the same months last year. This means, Coal India will have to mine about 155.21 mt in the fourth quarter to meet the complete year target.
In the third quarter, production increased to 117.37 mt against 114.62 mt in the corresponding period previous year.
Coal India registered 7.9 per cent growth in offtake during the first nine months of 2012-13.
The public sector miner delivered 335 mt during April-December 2012 (310.5 mt).
In 2011-12, Coal India missed the production target. It mined 435.84 mt against target of 447 mt.