Coal India aims 8% growth in production, plans capex of Rs 10,000 crore in FY20
PTI June 5, 2019
Coal India targets more than 8 per cent growth in production at 660 million tonnes in 2019-20 compared to 607 million tonnes in the last fiscal and plans a capital expenditure of Rs 10,000 crore in the current fiscal, according to sources.
The target for revenue from operations (net) has been fixed at Rs 1 trillion for FY2019-20, they said.
The targets were fixed during a meeting between the Coal Ministry and Coal India (CIL) held recently.
"CIL had signed the mandatory memorandum of understanding ... with Ministry of Coal for its key performance areas for the fiscal 2019-20. Thus the coal production and offtake target for the year 2019-20 is 660 MT .... CAPEX target has been set at Rs 10,000 crore," sources said.
As laid down in the MoU 2019-20, the Maharatna PSU has to ramp up its coal production growth to 8.75 per cent over the previous year.
CIL closed 2018-19 with a coal production of 606.88 million tonnes, against the MoU target of 610 million tonne.
Further to make the MoU more comprehensive, production efficiency and HR parameters have been included.
Also, parameter relating to Central Public Sector Enterprises (CPSE) conclave are an added features of the MoU 2019-20.
"The MoU for 2019-20 has been formulated on the lines of new DPE guidelines and finalised after discussions with the Pre-Negotiation Committee and Inter Ministerial Committee," source said.
Coal India which accounts for over 80 per cent of domestic coal output had set an internal aspirational target of 652 million tonne FY2018-19, but could not go closer to it as things did not fructify as perceived, sources had earlier said.