Coal India (CIL) has been asked by the Government 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. From this liquidation the gap between demand and supply is expected to come down to 114 mt, from an earlier estimate of 142 mt for 2011-12.
This stock liquidation by Coal India was subject to the availability of rakes and if the same is not feasible, the power sector needs to arrange evacuation of coal from pitheads of their own. As of April 1, approximately 70 mt of coal was lying at the pithead of various mines owned by CIL and its subsidiaries.
In the third and fourth quarter last fiscal, 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. On the widening demand-supply deficit, the shortfall had shot up from about 50 mt in 2007-08 to 83 mt last fiscal. Coal demand in the current fiscal is estimated at 696 mt, as against the targeted production of 554 mt.
| Company Name | CMP |
|---|---|
| Coal India | 438.70 |
| NMDC | 89.78 |
| GMDC | 733.40 |
| Sandur Manganese | 218.35 |
| MOIL | 327.60 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: