Cyclone Phailin effect: Coal India may miss output target
10 Jan 2014 12:50 AM GMT
The country is facing acute fuel shortages.
‘In the current fiscal there may be shortfall in the production of around 5 million tonnes,’ Coal India chairman and managing director S Narsing Rao said.
He said cyclone Phailin as well as law and order problems at its subsidiaries Mahanadi Coalfields Ltd and Central Coalfields Ltd would be among the reasons for the likely shortfall.
CIL had suffered a production loss of over 1 MT due to the shutdown of mining activities in Talcher Coalfields in Odisha.
Coal Minister Sriprakash Jaiswal had earlier asked the state-owned company to ensure that the output target for FY 2014 is met.
Mining activities at Talcher Coalfields in Odisha, including coal transportation, came to a halt on 29 November following violence by a group of labourers protesting the arrest of some of their colleagues at Jagannath area in Angul district.
The mining activities in around 6 coal blocks (in Talcher Coalfields) of Coal India subsidiary Mahanadi Coalfields Ltd were affected due to violence.
According to a CIL official, the PSU suffered production loss in October due to Cyclone Phailin, which affected the key coal producing states of Odisha, Jharkhand and West Bengal.
CIL, which accounts for over 80 per cent of the domestic production, contributed 452.5 MT of coal in 2012-13 as against the target of 464 MT.
CIL seeks stay on CCI’s Rs 1,773-crore fine order
New Delhi: State-owned Coal India Limited (CIL) has challenged Competition Commission of India's (CCI) move to slap Rs 1,773 crore penalty on the miner for unfair trade practices, seeking a stay on the order.
'We have filed an appeal before the Competition Appellate Tribunal. We have sought stay on the CCI order,' Coal India chairman and managing director S Narsing Rao said.
The appeal is expected to be heard by Competition Appellate Tribunal (Compat) next week. Competition Commission of India had imposed Rs 1,773 crore fine on Coal India, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.
The quantum of penalty —Rs 1,773.05 crore—is equal to three per cent of the PSU's average turnover for the last three years. In its order on 9 December last year, CCI had said CIL is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal. According to the fair trade watchdog, Coal India abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs through a mutual bilateral process with procurers.
'... the same were sought to be imposed upon the buyers without seeking, much less considering, the inputs of the power producers,' it had said. Touching upon a host of issues related to coal supplies, including sampling and testing procedures, the regulator had also ordered Coal India to modify the fuel supply agreements (FSAs) after consulting stakeholders.
‘In the current fiscal there may be shortfall in the production of around 5 million tonnes,’ Coal India chairman and managing director S Narsing Rao said.
He said cyclone Phailin as well as law and order problems at its subsidiaries Mahanadi Coalfields Ltd and Central Coalfields Ltd would be among the reasons for the likely shortfall.
CIL had suffered a production loss of over 1 MT due to the shutdown of mining activities in Talcher Coalfields in Odisha.
Coal Minister Sriprakash Jaiswal had earlier asked the state-owned company to ensure that the output target for FY 2014 is met.
Mining activities at Talcher Coalfields in Odisha, including coal transportation, came to a halt on 29 November following violence by a group of labourers protesting the arrest of some of their colleagues at Jagannath area in Angul district.
The mining activities in around 6 coal blocks (in Talcher Coalfields) of Coal India subsidiary Mahanadi Coalfields Ltd were affected due to violence.
According to a CIL official, the PSU suffered production loss in October due to Cyclone Phailin, which affected the key coal producing states of Odisha, Jharkhand and West Bengal.
CIL, which accounts for over 80 per cent of the domestic production, contributed 452.5 MT of coal in 2012-13 as against the target of 464 MT.
CIL seeks stay on CCI’s Rs 1,773-crore fine order
New Delhi: State-owned Coal India Limited (CIL) has challenged Competition Commission of India's (CCI) move to slap Rs 1,773 crore penalty on the miner for unfair trade practices, seeking a stay on the order.
'We have filed an appeal before the Competition Appellate Tribunal. We have sought stay on the CCI order,' Coal India chairman and managing director S Narsing Rao said.
The appeal is expected to be heard by Competition Appellate Tribunal (Compat) next week. Competition Commission of India had imposed Rs 1,773 crore fine on Coal India, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.
The quantum of penalty —Rs 1,773.05 crore—is equal to three per cent of the PSU's average turnover for the last three years. In its order on 9 December last year, CCI had said CIL is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal. According to the fair trade watchdog, Coal India abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs through a mutual bilateral process with procurers.
'... the same were sought to be imposed upon the buyers without seeking, much less considering, the inputs of the power producers,' it had said. Touching upon a host of issues related to coal supplies, including sampling and testing procedures, the regulator had also ordered Coal India to modify the fuel supply agreements (FSAs) after consulting stakeholders.
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