Coal India Ltd (CIL) has reported subdued coal production during the first quarter of FY20; wherein output has increased just a tad to 136.96 MnT as against 136.85 MnT recorded in Q1 FY19.
It is to be noted that CIL had registered a 15% growth in coal production during the first quarter of FY19, as compared with the same period of FY18. However, the growth has been only marginal this year.
The sluggish production growth in the first quarter is primarily believed to be on account of a slowdown in overburden removal (OBR), due to the delay in finalization of contracts.
Apparently, more than 90% of CIL’s production comes from opencast mines, and therefore, any slowdown in OBR affects the production growth, as was the case seen in recent SECL’s output figures.
CIL’s production in the month of Jun’19 stood at 45.08 MnT, marginally rising 0.5% Y-o-Y from 44.87 MnT in Jun’18, but had come down by 3% on the month from 46.59 MnT in May’19.
CIL’s Coal Off-Take:
CIL’s coal off-take witnessed a marginal dip by around 0.1% to 153.29 MnT during Apr-Jun’19, as against 153.47 during the year-ago period.
The company had supplied 48.86 MnT coal during Jun’19, down 1.6% Y-o-Y from 49.64 MnT in Jun’18, which was also 6% lower on the year from 52.09 MnT in May’19.
Major Coal Producers:
MCL emerged as the top coal producer and supplier after subdued OBR had affected SECL’s performance in Q1 FY20.
MCL’s coal production in the Q1 FY20 period rose 7% Y-o-Y to 34.78 MnT, overtaking SECL’s output of 34.33 MnT . While in terms of coal off-take, MCL had topped the list with 37.83 MnT.
NCL, WCL, CCL and ECL were the other noticeable coal producers in Q1 FY20, which had posted positive growth while raking up coal production in excess of 10 MnT in the quarter period.
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