State-run miner Coal India (CIL) may end the current financial year with a production shortfall of around 15 million tonnes against a production target of 838 million tonnes due to delays in land, environmental and other clearances.
“This year in the first quarter we had done exceedingly well. In the second quarter, due to heavy rain, our production was down. In October again we are ahead slightly by above 2 per cent compared to last year. I firmly believe in the next five months we will definitely grow in the range of 7 per cent,” Coal India Chairman PM Prasad said during an event to celebrate Coal India’s 50th Foundation Day on Sunday.
CIL’s output grew around 8 per cent year-on-year (y-o-y) to 189.28 million tonnes (mt) in the first quarter this fiscal, while production fell around 3 per cent y-o-y at 152.06 mt in the second quarter. After witnessing production contracted for consecutive two months, the company has registered a 2.3 per cent y-o-y rise in output to 62.5 mt in October.
In the seven months of the current financial year, CIL’s output was at 403.8 mt, which was up 2.5 per cent y-o-y over the same period last year.
The company’s production target for FY25 is 838 mt. However, the company, the world’s largest coal miner, may end the current financial year with a total production of around 823 million tonnes.
“Our target, though it was 838 million tonnes…we have committed to the ministry (Coal Ministry) of around 822-823 million tonnes, less than 15-16 million tonnes, because of various reasons of land, environmental and other clearances,” Prasad said.
He said Coal India has recently received environment clearance to step up production at Gevra mines (under South Eastern Coalfields), one of the largest coal mines under the company’s fold. This is expected to contribute significantly to the production in the coming years.
The Coal India Chairman expressed confidence that the company’s subsidiary Eastern Coalfields (ECL) would be able to wipe off its accumulated losses and become a dividend-paying entity by the next financial year. ECL’s accumulated loss is estimated at around ₹2,200 crore.
“I am hopeful of wiping off around two-thirds of the accumulated losses of Eastern Coalfields this year (FY25), and wipe off the entire accumulated losses next year (FY26) and be in a position to become a dividend-paying company,” Prasad said.
