Coal India production target cut

‘Inventory reduction could cut carrying cost’

Updated - May 03, 2017 08:43 pm IST

Published - May 03, 2017 08:42 pm IST - KOLKATA

Coal India Ltd.’s (CIL) production target for the current fiscal FY18 has been fixed at 600 million tonnes against 660 million tonnes envisaged earlier. This would require the company to grow at about 10% over the 550 million tonnes it touched in 2016-17.

It closed April 2017 with a production of 38.4 million tonnes which was 88% of the target. However, drawing from its stock of 60 million tonnes (at March-end, 2017), it despatched almost nine million tonnes more than its output. CIL sources said the 2016-17 target had to be reworked on the basis of demand from the power sector which accounted for 75% of the consumption.

“These numbers, which were fixed in tandem with the one billion-tonne target, had to be revisited in view of the tepid demand,” sources said.

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