Coal India misses target, records 431 mt output

Coal India Ltd. | Mining & Minerals | Metals & Mining | BSE: 533278 | NSE: COALINDIA

04 Apr 2011 Evaluate

Coal India missed its production target, producing just 431.325 million tones (MT) of coal in the just concluded fiscal, against the revised target of 440.20 MT due to green hurdles. Coal India Ltd (CIL) had a production target of 460.5 MT for 2010-11, which was revised to 440.2 MT, barely a few days before the close of the fiscal.

The Coal Ministry in December last year had expressed concerns that delays in the grant of environment clearance to the miner were likely to result in a production loss of about 190 million tones, valued at about Rs 18,800 crore, by March 2012.CIL was short of the revised target by 2.01 per cent while it missed the original, higher target by 6.3 per cent.

This has resulted in poor annual growth: the company output growth in the last fiscal is nil against a projected growth of about 7 per cent. In 2009—10, the company, which accounts for over 80 per cent of the domestic production had produced 431.26 MT, closer to what it achieved in 2010-11.In contrast, CIL’s coal output in 2009—10 had grown at 7 per cent more than the previous fiscal. In 2008—09, CIL’s production was 403 MT.