CIL aims double digit growth despite lower realisation

Kolkata, Sep 21 (PTI) Coal India today said it remainsfirm towards achieving a double digit coal production growthdespite muted demand and lower price realisation. "Going forward, in order to meet the production targets,Coal India needs to step up to a ‘double digit’ growth ratefrom that of around nine per cent achieved during 2015-16,"Coal India Chairman Sutirtha Bhattacharya said at the AGM. Asked whether one billion tonne coal production targetby 2020 would be revised in view of the muted demand and lowerprice realisation, Bhattacharya replied in the negative. In the quarter ended June 2016, the company posted 14.6per cent lower profit compared to corresponding period lastfiscal owing to lower realisation from coal sales. During 2016-17, the coal production target is peggedat 598.61 million tonnes with a growth of 11.6 per cent whilein the next year, production is expected to be at 660.7million tonnes, expanding at 10.5 per cent. Bhattacharya expressed hope that higher demand for thefossil fuel would be due to government schemes for discomslike Uday and power sector reforms but said ‘constraints’ inthe price still remained. He said stock at power plants has decreased to 25 milliontonnes from 37 million tonnes as on March 31. The year hadbegun with a 93-day coal stock at the CIL and the powerplants. The capex needs to be geared up and has already firmed upRs 7,500 crore for the current fiscal, he said. "Theinvestment could be revised if land policy by states getsrevised." The CIL chairman said its research and developmentexpenditure will also go up and it was already working with agroup of IIT for transformational projects which can becomegamechanger like carbon to hydrocarbon. PTI BSM MMANU