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CIL's 1 Billion Production Target; A Reality or Myth?

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State-owned Coal India recorded an output of 36.21 million tonnes (MT) in August, missing the target by 3.82 per cent. 

Source: ET

SNP Infra Research

CIL missing its target repeatedly is weakening the 1 Billion production goal by 2020. The coal transportation constraint and less domestic demand of coal from power plants also may affect the production of coal by CIL. Also government’s new renewable push also shifting the growth from thermal power sector. This will further reduce the India’s dependency on coal. So, in this scenario CIL’s 1 Billion production target is how much justified only future will tell? But same time new coal linkage policy, implementation of new coal mining technology and dedicated freight corridors for coal transportation hold the hope of country’s coal sector.

Source: SNP Infra Research