Coal news and updates

Coal India Ltd. closed October with a lower production, making it the third such consecutive output drop since August 2019.

Production at CIL, which accounts for over 80% of India’s coal output, stood at 39.4 million tonnes in October, which was 20.9% lower than the year ago. Between April and October 2019, CIL produced 280.4 million tonnes, which was 8.5 % lower than a year ago. Coal offtake was 18.9% lower in October .

Sources said that the problems arising out of heavy monsoons and a breach in a river embankment in September had spilled over to the month under review.Edelweiss Securities said in an analysis that taking cognizance of performance, they had cut CIL’s fiscal 2020 offtake estimates to 596 MT from the earlier estimates of 606 MT. “CIL has been facing a severe fiscal 2020,” the firm said.

Describing the October performance as “underwhelming”, Edelweiss pointed out that production and offtake at 39.3 MT and 40.5 MT was the lowest October volume in recent years.

 

Source : https://www.thehindu.com/business