Coal India output to hit record 550 mt this fiscal: Swarup
19 Jan 2016 5:10 AM IST
Increased output by Coal India has resulted in savings of about Rs 17,000 crore and the state-run miner is set for a record production of 550 million tonnes (mt) this fiscal, a top official said. Coal India is the single largest producer of dry fuel in the world and the government has set a target of doubling its production to 1 billion tonnes by 2020.
"Increased production of coal has resulted in decline in imports and a resultant saving of about Rs 17,000 crore in only first nine months of the fiscal," Coal Secretary Anil Swarup said.
Swarup said coal imports, which fell down to about 132 mt in April-December period of the current fiscal from about 155 mt in the same period a year ago, are likely to fall further on the back of increased output.
"Coal India is likely to hit a record production in the range of 540 mt to 550 mt in the current fiscal," Swarup said. He said the coal behemoth, which could hardly manage an increase of 31 mt of coal between 2010 and 2014, recorded an increase of about 32 mt in the last fiscal and has an "incredible" growth rate of 9.8 per cent.
He said increased production has not only resulted in enhanced energy production but also made available coal stock for 24 days with power plants, from the earlier three to seven days.
He said apart from increased production, increased offtake could also be possible with availability of higher number of rakes, which went to 204 per day in the current fiscal as against 182 in the last fiscal.
The state-owned firm accounts for over 80 per cent of the domestic coal production. Power and Coal Minister Piyush Goyal had earlier said that coal shortages will be a thing of the past and India will not need to import dry fuel by 2017, except to meet requirements of power plants located near coastal areas.
India had imported 212.103 mt of coal worth over Rs 1 lakh crore last fiscal.
Coal India stake sale may spill over to next fiscal
The 10 per cent stake sale in Coal India is likely to be deferred to next fiscal as the government wants to wait for stability in the equity markets for a better valuation. "If we don't get the right price, we may not sell government shares in CIL this fiscal," an official said.
Coal India shares are currently trading at Rs 318.20 a share, resulting in a notional loss of over 11 per cent to investors who purchased the equity at Rs 358 apiece in the disinvestment on January 31, 2015.
At current market price of Rs 318.20, sale of 63.16 crore shares, or 10 per cent stake, would bring in around Rs 20,000 crore to the exchequer. The government had last sold 10 per cent in the blue-chip on January 31, 2015, at the floor price of Rs 358 apiece and garnered Rs 22,557 crore. Foreign investors such as Fidelity, Wellington Management and BlackRock have already conveyed to the disinvestment department their reservations over Coal India stake sale at the current juncture as the stock is already beaten down.
Government has already shortlisted five Indian merchant bankers-- JM Financial, SBI Capital and ICICI Securities, Axis Capital and Kotak Mahindra Capital -- for managing Coal India stake sale.
Govt sets up panel on coal gasification
The government has set up an inter-ministerial panel for identifying coal and lignite mines to be put up for auction or allotment. The development of underground coal gasification (UCG )is envisaged to provide energy security.
The panel being chaired by Additional Secretary, Coal has members from ministries such as Petroleum and Natural Gas, an official said. The panel also has members from Niti Aayog and Central Mine Planning & Design Institute (CMPDI), the official added.
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