With only a month left in the current financial year, although Coal India may inch closer towards its target of producing 610 million tonne (mt) of coal as set by the government, it is likely to miss its aspirational annual output target of 652 primarily due to production issues in key mines of its core subsidiary, Mahanadi Coalfields (MCL).
Although the state-owned miner had a MoU target at 610 mt for this fiscal year, the company has internally set a target to achieve 652 mt of production if conditions are favourable.
Even if Coal India produces 2 mt of coal daily despite MCL suffering huge production losses, the state-owned miner’s total production may be in the range of 580-590 mt by FY19.
