Coal India Ltd.

In signs of missing its annual production target this fiscal, Coal India (CIL), is pitching for replacing the system of setting the annual production target for the PSU. Instead the company wants the government, to judge the company’s performance by setting the annual targets for coal sales or dispatches, given that the coal mammoth has a large inventory at its discretion which could be used to make up any shortfalls in the production. However, the Maharatna firm which has impressed the Planning Commission over the same is facing stiff resistance on the proposal from the Coal Ministry.

The company has so far produced around 405 MT and is likely to end the current fiscal at the level of around 452 MT. The company’s production target for the FY’13 is 464 MT. Besides, CIL has agreed to a dispatch or sale target of 492 million tonnes (MT) for the next financial year, against the dispatch target of 470 MT in the previous year. As of now the company has offloaded 425.5 MT of coal. Its performance on the coal dispatch front, in the current fiscal, has been better due to the availability of the ground stock. Further, the company is optimistic that if the off-take target for current fiscal is met, it would end up with 37 MT of incremental off-take.