Standard Post with Image

CIL Achieve Production Growth But Misses Production Target

News

Coal India, the world's largest miner of dry fuel, recorded an output of 121.33 million tonnes (MT) in April-June 2015, recording a 12 per cent growth over the same period previous fiscal. 

Source: ET

SNP Insight

CIL has shown strong coal production performance in both the quarter of FY2015 but it has missed the production target by narrow margin successively. The current 12% growth in production shows a positive sign towards achieving 1 Billion coal production by 2020. But the coming monsoon rain may reduce the coal production from open cast mines till September. And also decreasing power demand may reduce the coal off taking capacity of the power companies in coming months and can drag down the coal production. So, CIL has to have a robust plan in place to ramp up the production in the last quarter of the year to balance out the coal production shortfalls.

Source: SNP Infra Research