Coal India may raise production target further amid criticism

Kolkata: Amid mounting criticism over its inability to raise output, Coal India Ltd (CIL) has achieved its first-quarter production target of 102.46 million tonnes (mt), and is likely to raise its full-year production target from the 464 mt announced earlier. ?This is great news for India?s economy,? coal minister Sriprakash Jaiswal said.

The annual target for fiscal 2013 was earlier described by Coal India?s management as ambitious in view of the inability to expand its mines. The miner missed its production target of 452 mt last year, producing only 436 mt. In the quarter ended 30 June, production grew 6.4% from the same period last year.

The target for the quarter could be met because of ?constant monitoring of production at all levels and CIL?s preparedness to tackle the monsoon?, according to a spokesperson for the state-owned miner.

Monitoring production: Coal India chairman S. Narsing Rao. The state-run firm achieved its first-quarter production target. Indranil Bhoumik/Mint

Coal India?s ?disciplined performance? inspires hopes of raising India?s gross domestic product growth (GDP) to 8% in the current year, Jaiswal said.

C. Rangarajan, chairman of the Prime Minister?s economic advisory council, had said in Kolkata last week that slowing coal production was one of the key constraints to healthy economic growth.

Coal sales in the April-June quarter at 106.18 mt exceeded production, which implies the miner managed to reduce inventory. However, it was slightly short of projected sales of 112 mt. Supplies to power companies during the quarter grew 7.6% over the same period last year to 80.44 mt.

Power producers, however, are still not happy. ?There is no beauty in setting low targets and achieving them,? said Ashok Kumar Khurana, director general of the Association of Power Producers, an industry lobby.

Power plants have had to scale back production, and plants that can together produce up to 30,000 megawatts (MW) are currently running at 40% of installed capacity, Khurana said. Many plants have ?critically low? coal stock, which will last for only around six days.

?A joint strategy should be taken along with power producers to solve the crisis over fuel shortage,? Khurana added. Coal India is reviewing long-term fuel supply agreements with power producers. These agreements have been largely spurned by power utilities because the miner committed to supply only up to 65% of the contracted volume as against 80% earlier.

The Central Electricity Authority and the coal ministry are jointly reviewing the feedback received from state-run power utilities, according to Coal India chairman S. Narsing Rao, and the final decision on the supply agreements, which is to be taken at the miner?s board meeting on 10 July, ?will accommodate collective concerns?.

Source: http://www.livemint.com/2012/07/04235503/Coal-India-may-raise-productio.html

internal revenue service intc ipad mini nfl schedule 2012 andrew shaw christina aguilera tupac