South Eastern Coalfields Ltd (SECL), the major coal producing unit of CIL, has reported 14% decline in coal production during the first quarter of FY20.
The company had posted 34.33 MnT coal output during the Apr’19-Jun’19 period, coming down from 39.95 MnT recorded in Apr’18-Jun’18 period.
Interestingly, SECL was only the second- largest coal producer in Q1 FY20, with the largest output being recorded at MCL. Notably MCL had topped the list with 34.78 MnT coal output.
The significant drop in coal volumes could be attributed to the subdued Over Burden Removal (OBR) in the Q1 FY20, wherein SECL had managed 46.54 Million Cubic Metre (MCUM) OBR against the set target of 59.45 MCUM.
Of the total coal production in Q1 FY20, SECL’s coal output from Underground mines was marked at 3.53 MnT, in line with the set target of 3.56 MnT. However, output from opencast mines was marked 18% short of its targeted value of 37.57 MnT.
SECL’s monthly coal production of 11.33 MnT in Jun’19 had fell 14% Y-o-Y from 13.14 MnT in Jun’18, and was recorded second-best to MCL’s output of 11.4 MnT during the month.
SECL’s Coal Dispatch:
The affect of lower coal production was seen in SECL’s off-take figures which were marked 7% lower on the year at 37.76 MnT in Q1 FY20 period.
Apparently, the company had dispatched 10% more coal than its corresponding production during the quarter period, resulting in a liquidation of 37% coal from its pit-head stock since the beginning of FY20.
SECL’s pit-head stock was assessed at 5.84 MnT as on 1 Jul’19 compared with 9.27 MnT as on 1 Apr’19.
Going forward, SECL has been assigned with 11.275 MnT coal production in Jul’19, while target for off-take was set at 13.08 MnT.
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