Despite the threat possessed by COVID-19, CIL is aiming to boost coal output to bridge the gap between its actual production and annual fiscal target of 660 MnT.
Clearing the airs surrounding issues with its smooth functioning, the government has ensured that Coal is declared as an essential commodities, and its supplies are maintained during the lock-down so that power and other critical sectors are unaffected.
Continuing the recent growth, CIL has recorded highest single day coal output of 3.5 MnT on 27 Mar’20, surpassing the feat that was attained few days back. It is a matter of time to see how much coal it would accumulate at the end of the fiscal.
Nevertheless, it is important to discuss the performance of some of its subsidiaries which have made the limelight.
Northern Coalfields Ltd (NCL)
The coal company has achieved its annual production target of 106.25 MnT yesterday, thus registering annaul otput in excess of 100 MnT for the second time in a row.
Five of its mining area namely-Jayant, Khadia, Jhingurda, Nigahi and Block B had already attained their respective targets ahead of the tentative period.
Western Coalfields Ltd (WCL)
The company attained its annual production target of 56 MnT, in the process it had registered its highest ever daily output of 4.29 LT (Lakh Tonnes) on 27 Mar’20, exceeding its previous record of 4.02 LT made on 30 Mar’19.
South Eastern Coalfields Ltd (SECL):
The largest coal producing subsidiary is facing hard time to get close to its annual production target of 170 MnT, after portions of its large mines were waterlogged in the torrential rains. However, recovering from the setback, it had made relentless efforts to minimize the deficit.
SECL created history by producing 1 MnT coal in a single day on 27 Mar’20, which was the highest volume produced ever in the country by a single company. In addition, it had been fetching output above 800,000 MT in succession lately, which was never seen before.
Against the Motion:
While, most the subsidiaries are vigorously trying to make an impact, CCL has raised its voice for failing to deliver the committed target.
The coal company has blamed excessive stock level as a hindrance to the production growth, citing that almost all the linked power plants were directly or indirectly refusing to accept more coal supply.
The coal stock at CCL, which came down to lowest level of 3.1 MnT in Oct’19 has again risen to more than 10 MnT.
In order to ease the stock at its end, CCL had made all-out effort to maximize the dispatch, so as to increase its coal production.
The arrears/allotments to the non-regulated sector were liquidated. Besides, to tide over the present situation of poor demand, CCL had also went for series of auctions during recent months but the response from the consumers was very tepid because of saturation in the market.
Under the testing circumstances, CCL has concluded that it would not be able to reach the annual commitment of coal production set at 77 MnT for FY20.
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