CIL Likely to Miss FY17 Production Target by 20 MnT

State-run Coal India Limited (CIL) is likely to miss its production target for FY17 by around 20 MnT, according to the indications.

CIL is expected to end up producing 570-578 MnT this fiscal. The state-run miner had set a production target of 598 MnT for FY17.

The failure to achieve the production target could be attributed to a slew of factors, like rehabilitation issues associated with its subsidiary—Mahanadi Coalfields Limited, delays in coal evacuation and lower demand from the power sector, among others.

The Government is constantly making efforts to substitute the imported coal with domestic coal. However, CIL’s coal dispatch to power sector has declined both on the monthly and yearly basis in Jan’17.

Source: Coal Ministry
Quantities in MnT

Coal Production in FY17:
CIL produced year-high 55.99 MnT coal in Jan’17. However, monthly production fell by 3% M-o-M in the following month to 54.3 MnT in Feb’17.

During the period of Apr’16-Feb’17, CIL has so far produced 488.06 MnT against the set target of 535.38 MnT during the period, thus achieving 91% of the target set for the period mentioned.

Yearly production has however increased by 2.3% Y-o-Y to 488.06 MnT in Apr’16-Feb’17 compared with 477.31 MnT in the corresponding period of the previous year. Also, Monthly production in Feb’17 is much higher than 51.01 MnT in Feb’16.

Although CIL has improved production on yearly basis, it will not be enough to achieve its set target for FY17. Government is however making efforts to increase coal productivity.

Source: CIL Report