Coal India Limited (CIL)’s 46th Annual General Meeting was held on 23 Sep’20 — the key takeaways thereof are enumerated as follows.
Stating that around 80% of CIL’s entire coal supply was catered to power sector in FY20, the company’s Chairman Shri Pramod Agrawal firstly explained that coal will continue to be the principal fuel for power generation in India, irrespective of the country’s ambitious projections over renewable energy sources. Additionally, many non-power industries such as cement, fertilizers, sponge iron, aluminum, et al will also continue using coal.
Production and Dispatch Statistics
In FY20, CIL produced 602.14 mn t, or 91% of the targeted production. Coal off-take was 581.93 mn t, which’s 88% of target materialization due to subdued demand from consuming sectors.
Year-end coal stock of 45.01 mn t at power houses (as on 31 Mar’20) was the highest in a decade equivalent to 28 days consumption. With power sector adequately stocked, CIL stepped up its coal supplies to non-regulated sectors (NRS). CIL liquidated 4,661 of the 5,143 backlog arrear rakes of this sector pertaining to FY18 and FY19.
In FY20, CIL supplied 10.21 mn t of coal to power plants under import substitution mechanism compared to 8.22 mn t in FY19.
Financial Performance
In FY20, CIL achieved profit before tax of INR 24,071.32 crores and profit after tax of 16,700.34 crores.
CIL achieved gross sales of INR 134,979.13 crores and net sales of INR 89,373.34 crores.
Growth Strategies
A total of 18 mining projects have been cleared by CIL and its subsidiary companies in FY20 to ramp up coal production with a rated capacity of 132.04 mn t p.a. and sanctioned capital of INR 21,244.55 crores.
Other developmental proposals discussed in the AGM include the following—
- CIL has approved procurement of 40 rakes of BOXN-S railway wagons at a capital cost of INR 675 crores to enhance rake availability for evacuating increased quantities of coal in the South East Central Railway circuit, feeding to 15 power houses.
- CIL has taken steps to upgrade the mechanized coal transportation and loading system under ‘First Mile Connectivity’ projects.
- CIL has proposed to deploy 26 continuous miners in 19 underground mines within the next five years starting from FY20.
- CIL has implemented coal quality assessment measures through third party agency, which presently covers 99% of supply to power utilities.
- CIL has finalized tenders for procurement of Heavy Earth Moving Machinery worth over INR 5,900 crores for augmentation of coal production.
- CIL has signed a memorandum of understanding with a Russian government agency to venture into the business of acquisition, development and operation of coking coal assets in the Far East region of Russia.
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