Coal production by the state-owned miner, Coal India Limited (CIL), exhibited rising trends for Jun’16 and the first quarter of FY17, but sluggish demand had posed as a grave concern for the miner to manage its production during the quarter.
In Jun’16, CIL produced 42.72 MnT, which is 10% higher than the production in the same month of the last fiscal.
During the Apr-Jun’16 period, the state-run miner produced 125.65 MnT, which is 3.5% higher than the production during the corresponding period in FY15, at 121.4 MnT.
Coal sales during the Apr-Jun’16 period were hampered by excess inventory available with power plants that resulted CIL achieving only 3% growth in the sales during the period under review. CIL sold 133.19 MnT of coal in the Apr-Jun’16 period against 129.39 MnT in the same quarter of FY15.
In Jun’16, the sales were recorded at nearly 7% higher at 44.96 MnT.
The muted sales growth during the first quarter of the current fiscal is attributed to power producers having high stocks of inventory. Thermal power companies in India had a stock of 30.51 MnT as on the end of Jun’16.
Source: CIL
In view of high coal stocks with power companies, CIL had to cut-down its production during the period of the current fiscal. CIL’s production during the first quarter of FY17 had fallen behind the production target by 5%.
Leave a Reply