PSU Stock Call: ‘Hold’ Coal India shares, target price Rs 243; threat to profitability

Coal India’s (CIL) shipments rose 3% y-o-y to 51.5mt in February, 2019. Key highlights: (i) shipments of large subsidiaries—MCL and SECL—rose 2% and 4%, respectively; (ii) production grew 6.5% y-o-y to 58.1mt led by MCL and SECL; and (iii) pit-head inventory estimated at 35mt as of February end leading to improved coal availability. Going ahead, […]

Stressed power plants to get coal linkages; Cabinet okays these relief measures

he Union Cabinet Thursday approved recommendations of a group of ministers (GoM) relating to stressed power projects including grant of coal linkage for short-term power purchase agreements (PPAs). The decision was taken by Cabinet Committee on Economic Affairs (CCEA). Briefing reporters, Finance Minister Arun Jaitley said the recommendations approved include grant of coal linkage for […]

De-stress India’s thermal projects would need supply of 125 million tonne of coal, a challenge in today’s scenario

Amidst moves to revive stressed thermal assets of 45,000-MW capacity, what has slipped under the radar is the need for coal linkages if the projects are to be made viable. For, it is estimated that, operating at 70% PLF, these plants would annually require in excess of 125 million tonne of coal, with a possible […]

Coal shortage, state dues, higher salaries behind losses at discoms

Shortage of coal at power plants, inadequate tariff hikes and rising operational costs after the 7th Pay Commission have been putting additional pressure on already hard-pressed electricity distribution companies (discoms). In a review meeting recently held here to map the progress of various schemes under the Union power ministry, discom officials also blamed the late […]