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Coal India Ltd’s (CIL) coal production dipped by around 4 per cent to 50.02 million tonne (mt) in November 2019 compared to 52 mt the same period last year.
Coal offtake dropped by around 7 per cent to 47.37 mt in November against 51 mt the same period last year.
On a month-on-month basis, however, coal production was higher by around 27 per cent in November compared to October 2019, said a press statement issued by CIL. Similarly, coal offtake for November 2019 grew by almost 17 per cent on a month-on-month basis to 47.37 mt as against 40.5 mt in October this year.
Month-on-month growth
“Generally, Coal India compensates for the production drop of the first half of the fiscal, during the second half and accordingly our production has begun to look up from the month of October 2019 when we registered a month-on-month growth of around 28 per cent,” a CIL official said in the statement.
The country’s largest miner saw its production getting crippled due to severe monsoon across its mining areas.
For the financial year 2019-20, Coal India is envisaging an 8.5 per cent growth in production at around 660 mt, as per its MoU with the Coal Ministry. CIL had registered 7 per cent growth in production at 606.89 mt in 2018-19, around 3 mt short of its planned target of 610 mt last fiscal.
The first two quarters typically contribute to 40 per cent of CIL’s total production, while the remaining 60 per cent comes from the last two quarters. Of that, the fourth quarter plays a significant role in enhancing production.
Given that the company is around 2 mt short in terms of coal production so far this fiscal compared to last year, it might be quite an uphill task for CIL to meet its production target this fiscal, industry sources said.
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