With close to 10 per cent growth in production during the first quarter of FY24 at around 175.5 million tonnes (mt), Coal India Ltd (CIL) seems to be on track to achieve its target of producing around 780 mt of coal during the current financial year.
Expansion in volume terms was 15.7 mt which is significant as it came over a high base of 159.8 mt during the same period last year. Production for June grew by over 12 per cent at 58 mt as against 51.6 mt in June 2022, said a press statement issued by the company.
According to a senior company executive, the output could have been even higher but for the heavy rainfall in the last week of June across its mining areas.
CIL’s overburden removal (OBR) continues its runaway pace as it excavated 497.5 million cubic metres (M.CuM) of OB during April-June 2023, with the comparative period growth hovering high at around 30 per cent.
“This is an encouraging signal for us as that facilitates faster future production,” the executive said.
The newly appointed Chairman, P M Prasad, who took over the charge on July 1, underlined his priority and said, “CIL would achieve the 780 mt output target of FY24 with all efforts and means available at its disposal.”
He further added that the state-owned miner would ensure uninterrupted coal flow to the power sector as another priority area.
Total supplies during the quarter ended June 2023 increased by over five per cent at 187 mt compared to 177.5 mt of Q1 FY22. Non-power sector consumers continued to receive higher quantities of coal in the current fiscal, which at the first quarter end was at 33.4 mt, a growth of 34 per cent over 24.8 mt to the sector same period last year, the release said.
Before taking charge as Chairman of CIL, Prasad led the Jharkhand based Central Coalfields Ltd – a CIL arm - to its production target achievement in FY23. He succeeds Pramod Agrawal who stepped down on June 30, on attaining the age of superannuation.