Coal India Ltd (CIL) is hopeful of achieving 5-7 per cent growth in production at around 640-650 million tonnes (mt) in FY21, as compared with 602.14 mt in 2019-20.
CIL witnessed close to 12 per cent drop in production and around 22 per cent decline in offtake due to poor demand during the first quarter of this fiscal. However, with industrial and commercial activities picking up from July onwards and demand for coal improved, CIL was able to shrug off the Q1’s tepid growth and clocked 11 per cent rise in production and nearly 10 per cent increase in off-take during Q2 over the same quarter last year.
In September, CIL recorded the highest ever production at 40.51 mt (30.78 mt), while off-take grew by nearly 32 per cent to 46.46 mt (35.28 mt).
The growth momentum has continued in October with the company posting around 20 per cent rise in output and 24 per cent growth in offtake as on date.
It is to be noted that the coal behemoth had fallen short of its targeted production in the last fiscal. There were apprehensions that the company might witness de-growth this year on the back of the poor demand situation in the wake of the pandemic.