State-controlled Coal India Limited (CIL) announced that it has lowered its production target for the fiscal year to 440 million metric tons, down from the 452 million tons initially outlined in the company’s annual plan, according to an Economic Timesarticle.
Indian news agency PTI has quoted CIL Chairman N.C. Jha as confirming that they have kept the production target of at least 440 million tons.
While speaking to media on the sidelines of the International Conference of Safety in Mines Research Institutes in New Delhi, the chairman cited various reasons such as heavy rainfall, strikes and delays in obtaining forestry and environmental clearances for coal projects as the causes of the productions target’s downward revision.
Currently, CIL’s production is 10 percent below target, with a decrease of 3.9 percent as compared to the last year’s output.
The coal miner was not able to achieve its April-September target by about 20 million metric tons, recording an output of 176 million tons against the target of 196 million tons, as inclement weather, including heavy rains in August- September that affected production in almost all its collieries.
CIL accounts for 81 percent of India’s domestic coal production and is the sole supplier of coal and other basic raw materials to state-owned power utilities across the country. It has already missed the target in 2010-11 with the production barely inching up 0.2 percent over a year before, touching 431 million metric tons. As a pre-emptive measure, CIL cut the current year’s target for the second time to 440 MT from 447 MT, itself lowered from 452 MT set in the beginning.
Continue reading this article on Oilprice.com