The Hindu : Business : Coal India set to achieve target

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Coal India set to achieve target

Special Correspondent

To ensure firm commitments from power utilities
To act as facilitator for coal imports by SEBs

KOLKATA: Aided by increased production from its mines, Coal India Ltd. (CIL) is hopeful of closing this fiscal with a production of 405 million tonnes which, if achieved, would translate into a 25 million tonne increase in output against the 18 million tonne increase achieved in 2007-08.

The planned imports of four million tonnes may also not be necessary and a meeting has been called for with the power utilities for getting their firm commitments.

This year’s target had seemed impossible for CIL in April 2008 as it needed a higher contribution from the existing mines, since forest and environment clearances were holding up new projects, which could otherwise have gone on stream, CIL Chairman P. S. Bhattacharyya said. Despatches to power utilities during April-December 2008 stood at 215.4 million tonnes which was 101 per cent of the target.

Raw coal production during this period stood at 275.7 million tonnes, a growth of seven per cent over 2007-08.

Imports

Coal offtake too has increased by 18.3 million tonnes and coal stocks now stand at 31 million tonnes against 46 million tonnes with a production increase of 18.02 million tonnes in the first nine months of 2008-09.

On the coal import front, it was learnt that although CIL had agreed to act as facilitator for coal imports by the State-owned utilities, which did not have the infrastructure for importing coal, it now appears that there is not much demand.

“We will shortly meet officials of the eight State electricity boards, which were keen to import coal, to know their firm commitments,” Mr. Bhattacharyya said.

It may be mentioned that prodded by the Planning Commission, CIL had decided to import coal for the first time in its history this year.

This was also in tune with the 2007 Coal Distribution Policy which said that CIL would have to meet the country’s demand for coal, if necessary through imports.

However, the CIL Chairman said that the company would do so only after getting firm orders. International coal prices now rule at about $80-90 per tonne compared to domestic prices of $20 (after adjusting for the calorific heat value differences).

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