Coal India Limited (CIL) refuses to trim its production target for this fiscal despite production levels surpassing demand. On a brighter note, the state-run coal major sees demand for coal picking up in India with the onset of winter season, when consumption of power will rise.
CIL’s coal sales had fallen 1% year-on-year during the first half of the current fiscal due to lower off-take by power companies. During the Apr-Sep’16 period, CIL sold 249.11 MnT of Coal, which is 88% of its actual target of 283.80 MnT.
Despite lower demand, CIL had managed to reduce its pithead stock of 56 MnT at the beginning of the fiscal to 40 MnT, at the end of the six months of the fiscal.
CIL has targeted to produce 598 MnT in FY17. Besides, the private miners are expected to produce 50-60 MnT during the fiscal.
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