Coal India may miss FY11 output target as stocks pile

Coal India may miss FY11 output target as stocks pile

New Delhi: Coal India, the world’s largest coal miner, may miss the current fiscal year’s 460.5 million tonnes production target as the state-run firm seeks to reduce stocks piled up due to inadequate transport infrastructure, its technical director said.

“As of now, 48 million tonnes of coal are lying at the pitheads. Even if we mine 450 million tonnes, the stock will go up to 70-80 million tonnes. There is no point in producing coal with unmanageable stocks," N.C. Jha told reporters on Wednesday.

Coal India’s April-October output trailed the government-set target by 22 million tonnes, he said, without elaborating.

Demand for coal is forecast to grow 11% a year in India, as the country aims to halve its peak-hour power deficit of nearly 14% over the next two years and triple its generation capacity over the next decade.

Kolkata-based Coal India accounts for nearly 80% of India’s coal output.

The federal government recently raised about 15,200 crore (about $3.4 billion) through the sale of some of its holding in Coal India—in the country’s largest ever initial public offering—part of a broader plan to divest stakes in state-run firms over the next few years.

At 9:35 GMT shares of Coal India were trading at 324.10 a piece, down 0.60% from its previous close.