Team News Riveting
State-run Coal India Limited (CIL) is all set for ramping up production as it neutralized the negative growth for the first time in the ongoing fiscal amidst pandemic and monsoonal downpour.
The feat was recorded on October 20 when the largest coal producing company neutralized the negative growth in coal production for the year.
The coal production of 265.69 Million Tonnes (MTs) as of date was at level with last year’s output on the same date with the company posting a marginal 0.04 MT increase in volume terms.
Mahanadi Coalfields Limited with progressive coal production of 71.17 MTs, on October 20, which is a 9.61 MT increase on year-on-year comparison and Northern Coalfields Limited at 60 MTs logging a jump of 3.15 MTs during the referred period have played catalytic role in wiping off CIL’s negative production trend.
Also, what made this possible was that beginning August’20 CIL began posting strong growth in production and off-take. Scripting a new high the company recorded the highest ever production and off-take growth in September’20 clocking 31.6 per cent and 31.7 per cent respectively.
For October till date, CIL recorded around 20 per cent growth in output and 24.3 per cent in off-take.
“From now on ramping up coal production would not be a problem especially with coal seams exposed, and ready for production, due to a phenomenal growth of 71 per cent in over burden removal in September ’20 and 22.3 per cent during first half of the fiscal” said a senior executive of the coal behemoth.
CIL induced by COVID stifled slowdown, during the first quarter of FY’21suffered 11.6 per cent growth constriction in production and 21.5 per cent slump in off-take. Considering this huge set back the company came back strongly in expunging the negative trend in output on 20th October.
With the industrial and commercial activity picking up from July onwards and demand for coal showing signs of improvement CIL could shrug off the Q1’s tepid growth and clocked a robust 10.6 per cent production increase and near 10 per cent growth in off-take during Q2 of the present fiscal compared to Q2 of FY’20.
Coal off-take till October 20 of the current fiscal at 287.19 MTs is trailing by 4.9 per cent compared to the same date last year.
“However, we are confident of removing the negative trend in coal off-take by November and grow from thereon especially with thermal power plants and non-regulated sector customers showing keenness to lift increased quantities of coal. There is also a spike in the auction sales” the official added.
