Indian coal producer, CIL, has produced about 1.4 MnT less coal than targeted in Aug’15. However, the production is up by about 4.8% Y-o-Y basis.
According to the latest release by Coal India, the state owned coal mining corporate has produced about 36.2 MnT coal in Aug’15. The company failed to achieve its production target for the fourth time in row. The organization missed its production target by about 4%, however it succeeded in achieving its off-take target. The coal production and off-take target of the firm for the month of August was set as 37.65 and 40.5 MnT respectively.
NCL and CCL emerged as star performers for the month among all eight subsidiaries of CIL, achieving their production target by 110% and 105% respectively.
According to recent release by Indian coal ministry, annual coal demand for FY16 has grown up to 910 MnT. Centre has planned about 550 MnT of coal production from CIL, and about 150 MnT from SCCL and other captive blocks. And has planned about 210 MnT from imports for fuel starved sectors including both regulated and non-regulated sectors.
With an estimated total reserve of about 301 BnT (Energy Statistics 2015), India is one of the major reservoirs of coal. Yet the country has to import a considerable quantity. The main reasons for demand-supply gap of indigenous coal in India is unavailability of the grade of coal required to fuel the needy sectors like steel and sponge industry. Along with this, infrastructural constriction and operational choke-points in coal transportation remain as significant factors stimulating demand-supply gap of indigenous coal .
SteelMint assessed that India imported about 16.3 MnT of coal in Aug’15, registering a decline in import by about 15% M-o-M. India imported about 19.2 MnT of coal in July’15.
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