Coal Ministry Lowers FY18 Coal Production Target in India to 600 MnT

The Coal Ministry has lowered Coal India Limited’s (CIL) coal production target for FY18 by 60 MT to 600 MnT.

The decision is unexpected in view of the ambitious target of attaining 1 BnT of coal production in the country by FY20 in place. But, the prevailing weak demand in the country from the thermal power plants seems to justify the lowering of the production target.
Currently, there is coal stock of around 69 MnT of CIL, and additionally, power plants are having stocks of around 27 MnT of coal.

Under such circumstances, where there is surplus coal in the country, scaling down the production target seems reasonable.

Source: CoalMint Research