Coal India Ltd has registered an over 10% growth in production to 54.17 million tonnes (MT) till January 27 compared with 48.94 million tonnes it reported in the same period last year. This is the first double-digit growth that the company has registered during the ongoing fiscal.
According to an official, the production spurt came largely on the back of better show at Mahanadi Coalfields and South Eastern Coalfields (SECL). He further added that by the end of January, production is likely to be up by another 8 MT.
Coal India (CIL) has liquidated over 78% of non-lapsable arrear rakes to non power sector after it had build up sufficient coal stock for the power plants. The arrear rakes for the non-power sector consumers were pending for FY18 and FY19.
CIL began by clearing 5,143 arrear rakes on April 1, 2019 and brought down the number to 1,116, clearing 4,027 rakes. It is expected that the rest will be cleared by the end of the fiscal.
According to a CIL official, two factors mainly contributed to clearing the pending railway rakes. First, a pick up in production post monsoon and second, a low demand scenario from the power plants, which helped CIL build up sufficient stock
Research firm Wood Mackenzie is of the view that Indian coal production will improve in 2020. WoodMac Principal Analyst Mr Pralabh Bhargava said , higher rainfalls not only resulted in lower coal generation but also hindered domestic coal production, however, domestic production is expected to improve in 2020. Firm Wood Mackenzie expect coal consumption to grow only 0.5% in 2019 as compared to 8.5% in 2018 but expect consumption to improve in 2020 with a growth rate of 4.4%.
The National Highways Authority of India will seek approval from its board for flexibility in awarding road projects and not always go by a formula devised earlier. While seeking the flexibility, it will also come with a clause that these projects are monetised within three years.
Road transport and highways Minister Mr Nitin Gadkari said the ministry would stick to the EPC mode, which is fully funded by the government, while awarding road projects in the current scenario, when the private sector’s ability to invest has been limited by the global slowdown.
Coal India’s foreign acquisitions plan has hit a roadblock with all top merchant bankers refusing to offer consultancy or carry out due-diligence of assets shortlisted by the firm. This is likely to delay the company’s foreign ventures since it will now have to look for second rung bankers ready to offer services to the coal sector.