CIL slashes coal production target for FY ’22

Country’s largest coal producer-Coal India Ltd (CIL) has decided to keep its production target lower for FY ’22 in view of the surplus coal inventory available at the pitheads.

The miner has set target of 640 mn t coal production at a time when demand from power sector has yet to crystallize fully.

It is noteworthy that CIL has been raising its production in line with the rising coal demand in the country. In the previous fiscal, the company had set an initial target of 710 mn t which was later revised to 660 mn t due to the disruption in coal supply caused by COVID-19.

Eventually, the miner ended the fiscal by attaining an output of 596.25 mn t, thus recording production drop for the second straight year. In turn, coal stock close to 100 mn t accumulated at the pithead mines.

As a result, the company has drastically reduced production schedule in the first half of FY ’22 (Apr-Sep ’21) in order to replenish the excess stock in hand. While, the production would be gradually increased in the second half wherein output of 211.2 mn t has been planned for the final quarter of FY ’22.

Target for Individual subsidiaries:

Highest production target of 160 mn t has been accorded to South Eastern Coalfield Ltd (SECL), followed by 155 mn t for Mahanadi Coalfields Ltd (MCL).

Among the various subsidiaries, only NCL was assigned with higher production target compared to the previous fiscal. Notably, the company has been the best performing subsidiary after it attained production target for third straight fiscal in FY ’21, that too in a record time.

No decision has been made regarding commencement of mining operation from North Eastern Coalfield (NECL) means that the coal producing unit has been excluded from the list.