Coal India Limited (CIL) has signed the mandatory Memorandum of Understanding (MoU), on 15 May’19 with Ministry of Coal (MoC) for its key performance areas during the fiscal 2019-20.
As laid down in the MoU, the Maharatna Coal Mining PSU, has been set target to attain 660 MnT coal production and offtake during FY20. In order to achieve the goal, the coal company has to ramp up its production growth to 8.75% over previous year.
In the past fiscals, CIL has failed to reach its targeted production, only to come very close of its MoU target of 610 MnT in FY19 when it had attained 606.89 MnT.
In terms of financial earnings, CIL’s target of revenue from operations (net) has been fixed as INR 100,000 Crores & Capital Expenditure (CAPEX) target has been set at INR 10,000 Crores.
Further to make the MoU more comprehensive, production efficiency & HR parameters have been included. While parameters relating to CPSE conclave are the added features of the MoU 2019-20.
MoU Between NLC India Ltd and Ministry of Coal:
NLC India Limited (NLCIL), too has entered the mandatory Memorandum of Understanding (MoU) with Ministry of Coal (MoC), targeting 24,500 MU power generation during FY20.
Revenue from Operations has been fixed at INR 8700 Crores, while CAPEX (including subsidiaries) of INR 8271 Crores has been fixed at Excellent level.
Parameter related to NLC’s lignite production target has not been specified in the report published by Coal ministry, but it had highlighted the need to reduce import bill over the previous year.
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