CIL aims double digit output growth in H2 this fiscal

Coal India is targeting a sharp jump in coal production with <g data-gr-id="26">double digit</g> growth in the second half of the current fiscal. “There is a whopping growth of 37 per cent in Over Burden Removal (OBR) in the April-September 2015 period. This will pave <g data-gr-id="33">way</g> for ramping up the coal production,” a top Coal India official said. OBR is key to production for open-cast mines. Around 93 <g data-gr-id="27">per cent</g> of the company’s total coal production comes from open-cast mines. The company said OBR during <g data-gr-id="30">first</g> half of the fiscal (April-September 2015) was 509.78 million cubic <g data-gr-id="31">meters</g> or 37 per cent higher over the corresponding period last fiscal. Meanwhile, Coal India had achieved 8.9 <g data-gr-id="28">per cent</g> growth in coal production for H1 (April-September 15’) by extracting 229.54 million tonnes of coal and met 97 <g data-gr-id="29">per cent</g> of its target.

In contrast, growth in the corresponding H1 of last year was 5.1 <g data-gr-id="19">per cent</g> with 210.7 million tonne production. However, the production growth had slipped compared to first five months’ (April-August 2015) growth rate of 9.4 <g data-gr-id="20">per cent</g>. Offtake during the period under review had registered a 9.3 per cent jump to 251.3 million tonne, which is 97 <g data-gr-id="21">per cent</g> of its target. This year coal inventory at power utilities of the country achieved a new high. As of September 30, 2015, coal stock at <g data-gr-id="22">power houses</g> across the country was 26 million tonnes, which is 22 days’ stock.

Coal stock was only 8.58 million tonnes or 5 days’ stock, as on September 30, 2014. The reasons seen for the same are higher production from Coal India, diversion of e-auction coal to power sector and tepid demand from utilities.