Coal India (CIL) has reported a 10% y-o-y decline each in August production and sales volume, now down to their lowest levels in the past three years. Key highlights: (i) Larger subsidiaries MCL (Mahanadi Coalfields Ltd) and SECL (South-Eastern Coalfields Ltd) accounted for the bulk of the decline; (ii) continued low rake availability – down to 178/day in August from 205/day in July—dampened offtake; (iii) production volume was hit by fatalities at MCL and SECL and higher-than-normal rainfall.
Five federations representing over half-a-million workers of Coal India Ltd, along with Singareni Collieries Company Ltd and state-owned coal firms, have called for a strike on September 24, seeking withdrawal of the Centre’s decision to allow 100 per cent FDI in mining.
In a fresh round of FDI reforms, the Union government has allowed 100 per cent foreign direct investment (FDI) in coal mining and contract manufacturing, as part of its efforts to boost economic growth.
Shares of metal companies rallied up to 6 per cent on the BSE on Thursday after a slew of positive global developments lifted investor sentiment.
Among individual stocks, Coal India zoomed 6 per cent, National Aluminium Company (Nalco) rose 4.8 per cent, JSW Steel, Tata Steel, Jindal Steel & Power, and Steel Authority of India all gained over 3 per cent, while Hindustan Zinc was up 2 per cent on the BSE.
Coal India (CIL) has estimated that coal supplies by it by the end of FY26 will be lower than what is required to meet 100% of its committed volumes to buyers by 53.3 million tonne (MT). Shortages would persist even if it is able to meet the FY26 production target of 1,000 MT.
However, the company would have a surplus availability of 40.8 MT in FY24, if it supplies at ‘trigger level’ — a technical jargon for assured minimum commitment volume. The surplus is contingent on CIL producing 880 MT in FY24.
The government’s move to relax FDI (foreign direct investment) rule in coal mining is expected to see new technology entering the sector in the coming years, Coal Minister Prahlad Joshi said. The opening up coal mining is one of the biggest reforms and the government already has some mines ready to offer but the details are with the senior officials and the PMO, Prahlad Joshi also told CNBC TV18 in an interview. India may need 1,000 mt of coal from captive and non-captive mines over the next two to three years, he added.
State-owned CIL’s 54 coal mining projects are facing delay due to various reasons such as contractual issues and delay in green clearances among others, the world’s largest coal miner said.
“A total of 120 coal projects costing Rs 20 crore and above are in different stages of implementation. Out of which 66 projects are on schedule and 54 projects are delayed,” Coal India Ltd (CIL) said in its annual report.
Coal India has posted a net profit of Rs 4,629.87 crore for the June quarter, a growth of 22.27 per cent, on the back of better realisation even as production and offtake volumes remained almost constant on an annual basis.
Revenue from operations during the quarter was Rs 24,938.99 crore compared with Rs 24,070.80 crore, a growth of 3.6 per cent.
State-owned Coal India Limited (CIL) has decided to purchase its own rail wagons under the General Purpose Wagon Investment Scheme (GPWIS), a scheme which the railways announced last year in view of boosting up logistics support for general cargo.
Earlier, there were schemes for owning tankers and container wagons to carry special goods like petroleum, oil and other container cargo serving the ports.
Kolkata: The Coal India has decided to procure rail wagons under general purpose wagon investment scheme at an estimated cost of Rs 700 crore.
"The Maharatna PSU's board has given the green signal to procure 40 rakes at nearly Rs 700 crore. One rake comprises 59 wagons. According to a rough estimate, one rake can move 1.4 million tonne of coal per annum," the company said on Thursday.
State-owned Coal India Ltd (CIL) reported a near flat growth in production during the April-June quarter (Q1) this fiscal, although the top management was in favour of keeping a stiffer target despite the muted growth. The company reported a 0.1% growth in production to 136.96 million tonne (MT) in Q1, against 136.85 MT in the year-ago period.
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