Annual production target of 482 MnT for the current fiscal year looks challenging to Coal India.
Talking about uncertainty of achieving production target, CIL Chairman and managing director S Narsing Rao said, “Obviously, as there are only 119 days left. We are losing 0.2 MnT production everyday from Talcher Coalfields for the last 4-5 days, and now the plant is shut down since last 4 days.”
It is in the view of shutdown of mining activities in Talcher Coalfields in Odisha and Cyclone Phailin.
Regarding uncertainty to achieve targeted production from CIL, Sriprakash Jaiswal, Coal Minister, asks CIL to ensure that output target for FY14 is met.
Coal transportation and mining activities in around six Coal blocks at Talcher Coalfields in Odisha, are hampered since 29 Nov, 2013. Reason for the halting is said to be violence by a group of laborers, protesting against arrest of some of their colleagues at Jagannath area in Angul. Affected 6 Coal blocks in Talcher are CIL subsidiary of Mahanadi Coalfields Limited.
These Coalfields produces and dispatches around 0.2 MnT Coal per day. It feeds NTPC plants and the NALCO CPP, apart from other power producers of the country.
Production loss in October is also due to Cyclone Phailin, which affected key Coal producing states such as Odisha, Jharkhand and West Bengal. CIL has achieved output of 39.20 MnT in November, against its production target of 41.93 MnT.
Rao said that “The current crisis, I cannot say, when it can be sorted out, but we are hoping because state government is fully aware of it and they are taking steps.”
CIL, which accounts for over 80 per cent of the domestic production, contributed 452.5 MT of Coal in the previous financial year compared with the target of 464 MT.