Coal India managed to sell 380 million tonnes of coal during the period April-December 2015 and registered a 9.8% growth during the same period. Shares of Coal India Ltd inched up 0.7% after the company reported 8.8% increase in its coal output to 321.38 million tonnes during April-November period of the current fiscal year compared with 295.40 million tonnes during the same period last year.
At present, coal stocks at power plants have touched 31 million tonnes and a number of plants are finding it difficult to accept additional coal from the company due to lack to storage area. According to sources, power companies, especially those in Rajasthan, Gujarat and Maharashtra, are unofficially asking Coal India to go easy on their supplies.
“More than adequate coal at power plants forced us to supply less coal than the target. However, we missed sales the target by a marginal 2.5% only. While the target for the period April-December was pegged at 399 million tonnes we managed to sell 389 million tonnes – a shortfall of about 10 million tonnes,” a senior Coal India official said.
During December, the world’s largest coal producer managed to achieve 97% of its sales target at 48.2 million tonnes. On the production front, Coal India achieved a 9.1% growth at 373 million tonnes against a target of 383 million tonnes. The company, however, is ready to produce as much as is required by power plants because it has achieved a large growth on over-burden removal in the last few months.
Over-burden is the top soil over a seam of coal which needs to be removed first in order to extract the coal. In the last few months, Coal India has removed large volumes of top-soil, making the company ready to extract and ship the coal as and when required.
In fact, during December, the company produced 102% of its target production and managed to extract 52 million tonnes of coal.
Winters are the most favourable season for coal mining when production rises. It is likely that Coal India would over-achieve its targets in the remaining three months of the current financial.
According to data provided by Central Electricity Authority, of the 31 million tonnes of coal stocked at power plants, some 29 million tonnes have been supplied by Coal India and the rest at 2 million tonnes have been imported by these thermal generators. With coal production on the rise, it is estimated that power producers would reduce their imports gradually.
For example, NTPC did not place any fresh import order this year. The coal it has been receiving was ordered during the last financial which are being delivered this year in tranches.
At present, coal stocks at power plants have touched 31 million tonnes and a number of plants are finding it difficult to accept additional coal from the company due to lack to storage area. According to sources, power companies, especially those in Rajasthan, Gujarat and Maharashtra, are unofficially asking Coal India to go easy on their supplies.
“More than adequate coal at power plants forced us to supply less coal than the target. However, we missed sales the target by a marginal 2.5% only. While the target for the period April-December was pegged at 399 million tonnes we managed to sell 389 million tonnes – a shortfall of about 10 million tonnes,” a senior Coal India official said.
During December, the world’s largest coal producer managed to achieve 97% of its sales target at 48.2 million tonnes. On the production front, Coal India achieved a 9.1% growth at 373 million tonnes against a target of 383 million tonnes. The company, however, is ready to produce as much as is required by power plants because it has achieved a large growth on over-burden removal in the last few months.
Over-burden is the top soil over a seam of coal which needs to be removed first in order to extract the coal. In the last few months, Coal India has removed large volumes of top-soil, making the company ready to extract and ship the coal as and when required.
In fact, during December, the company produced 102% of its target production and managed to extract 52 million tonnes of coal.
Winters are the most favourable season for coal mining when production rises. It is likely that Coal India would over-achieve its targets in the remaining three months of the current financial.
According to data provided by Central Electricity Authority, of the 31 million tonnes of coal stocked at power plants, some 29 million tonnes have been supplied by Coal India and the rest at 2 million tonnes have been imported by these thermal generators. With coal production on the rise, it is estimated that power producers would reduce their imports gradually.
For example, NTPC did not place any fresh import order this year. The coal it has been receiving was ordered during the last financial which are being delivered this year in tranches.
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