Coal news and updates

NLC’s lignite production almost flat in last 3 years

India Coal Market Watch

December 28: The production of lignite by Neyveli Lignite Corporation Ltd (NLC) remained almost flat during the past few years starting 2012-13 even though the value of lignite produced by the company rose by more than 23%.

According to data available, NLC’s lignite production in 2014-15 stood at 26.543 million tons (mt) in 2014-15 indicating a marginal increase of 0.32 mt or 1.22%, but the value of production increased to Rs 5214.86 crore from a low of Rs 4237.30 crore.

NLC’s net sales stood at Rs 6796.97 crore in 2014-15, up 10% as compared to Rs 6173.02 crore in 2012-13.

This goes on to show that the increase in value of production came largely through increase in price of lignite as actual production remained almost flat.

According to industry sources, because of increase in prices at a time when international coal prices remained largely soft and because of higher availability of domestic coal produced by Coal India Ltd (CIL), NLC is finding it difficult to sell its produce which is classified as G15 to G16 grades based on its calorific value.

However, during the same period i.e, between 2012-13 and 2014-15, the production of coal by Coal India Ltd (CIL) increased by 9.29% to 494.23 mt from 452.21 mt in 2012-13. Though the value of coal produced by CIL is not available, but the company’s net sale increased by 5.43% to Rs 72015 crore in 2014-15 from Rs 68303 crore in 2012-13.