Coal India subsidiary Mahanadi Coalfields Ltd (MCL) exited 2016-17 with a profit after tax (PAT) of INR 4491.09 crore, a growth of 7% over INR 4207.75 crore in FY16.
MCL has contributed 48% to CIL’s net profit of INR 14,000 crore for FY17.
MCL’s Profit before Tax touched a record high of INR 6853.32 crore in FY17, 9% higher than INR 6283.44 crore in FY16.
MCL’s contribution to the Odisha exchequer spiked by 23.81% from INR 2550.50 crore to INR 3157.92 crore. This included INR 1635.96 crore as royalty, INR 863.39 crore as DMF (District Mineral Foundation), INR 586.46 crore as sales tax/VAT (value added tax) and INR 72.11 crore as entry tax or other levies.
While coal production from MCL grew to 139.2 MnT, the company supplied record 142 MnT dry fuels to the consumers, largely the power plants, during the year ended March 31, 2017. Aiming at higher coal production, the company registered 25% growth in overburden removal (OBR) at 123.34 million cubic meters in FY17 compared to 98.41 million cubic meters in FY16.
MCL’s CMD A K Jha said the company was able to deliver a robust net profit despite many operational hindrances. The company has registered growth in all financials- PBT (profit before tax), PAT, sales, net sales, EPS (earnings before share) as well as physical parameters- coal production, dispatch, overburden removal and FSA (fuel supply agreement).
Stepping into the power sector, MCL has decided to set up 1600 MW power project with two 800 MW super critical units at coal-rich Basundhara region in Sundargarh district where the coal miner has surplus inventory. The company has offered to sell power to the Odisha grid from its proposed plant.
Moreover, MCL has been given the mandate to produce 160 MnT of coal in FY18, up from 139 MnT in FY17.
MCL was formed in 1992 as the eighth subsidiary of CIL with 23 MnT coal productions. However, with leveraging technology and its environmental-friendly initiatives, like the introduction of surface miner for coal production in 1997, MCL today shoulders the responsibility of supplying more than 20% coal to meet the growing energy demand of India.
The company has been the pioneer among CIL subsidiaries for introducing satellite-based surveillance of its mining operations as well as its free-from-human-interference system of e-procurement.
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