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Coal India to liquidate pit head stocks to boost supplies to power sector, eyes 5 mn tonne output from Mozambique

22 Sep 2011 Evaluate

Coal India Ltd (CIL) has been directed to liquidate coal stocks of up to 28 million tonnes (mt) lying at pit heads during the current fiscal for augmenting supplies to the power sector. With this, the gap between demand and supply is expected to come down to 114 mt, from an earlier estimate of 142 mt for 2011-12. Stock liquidation by Coal India is subjected to the availability of rail rakes and in case transportation infrastructure is not available, the power sector will have to make its own arrangements

CIL had attributed the accumulation of pithead stocks to law and order problems in States such as Jharkhand and Orissa, constraints in transportation of coal from pitheads to railway sidings and lower availability of railway rakes in the third and fourth quarter last fiscal. Coal demand in the current fiscal stands at 696 mt, against the targeted production of 554 mt.

Coal India expects to start 5 million tonnes per annum (MTPA) production from two blocks in Mozambique by 2015 and would look at acquiring more mines in the African nation. CIL had won the two blocks in August 2009 through a global tender floated by the government of Mozambique. Both the mines in Mozambique have an estimated reserves of 1 billion tonnes

Coal India Share Price

438.70 5.80 (1.34%)
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Company Name CMP
Coal India 438.70
NMDC 89.78
GMDC 733.40
Sandur Manganese 218.35
MOIL 327.60
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