CIL Misses Coal Production Target for FY17

CIL failed to achieve set coal production target despite highest monthly production in Mar’17.

Coal India Ltd (CIL), Maharatna Company inferred by Government of India has missed its production target by 44.48 MnT.

The company has produced 554.13 MnT coal in FY17 against the set target of 598.61 MnT, thus achieving 93% of the set target.

The failure to achieve the production target could be attributed to a slew of factors, like rehabilitation issues associated with its subsidiary—Mahanadi Coalfields Limited, delays in coal evacuation and lower demand from the power sector, among others.

CIL also failed to achieve its target for coal offtake by attaining 91% of the set target of 598.61 MnT.

Coal Production in FY17:
Despite the failure to achieve its production target, CIL coal production has improved over the year.

Coal production has increased by 3.2% Y-o-Y compared with 536.51 MnT in FY16.

Monthly coal production in Mar’17 was 66.07 MnT, which was the highest over the two year period. Coal production in Mar’17 increased by 22% M-o-M compared with 54.3 MnT in Feb’17.

Subsidiary-wise Production:
South Eastern Coalfields Ltd (SECL) produced the highest share of coal for CIL in FY17, followed by MCL, NCL, CCL and WCL.

SECL has produced 140 MnT coal thus overtaking MCL to become the highest coal producer in FY17, also registering a growth of 3% Y-o-Y compared with 135.66 MnT in FY16.

                                                                                       Quantities in MnT

Coal Offtake Performance in FY17:
Coal offtake during FY17 recorded growth of 1.6% Y-o-Y to 543.16 MnT.

Coal from MCL attained the highest share of the total coal offtake, followed by SECL, NCL, CCL and ECL.

Source: CIL Performance Report