The world’s largest coal miner Coal India Ltd (CIL) has set production and coal off-take targets of 452 million tonnes (MT) and 454 MT respectively for the financial year 2011-12 .
Revealing its roadmap, the navratna PSU has signed a Memorandum of Understanding (MoU) with the coal ministry today for its key performance areas for the fiscal 2011-12. “As per the MoU for the fiscal 2011-12, CIL’s targeted production and coal off-take have been fixed at 452 MT and 454 MT respectively for attaining an ‘excellent’ rating,” the company said in a statement. For previous three fiscals also Coal India was rated ‘excellent’.
To attain the targeted off-take, CIL has sought 175 rakes per day for 2011-12, as against the average availability of 156.8 rakes per day and 161.9 rakes per day during 2009-10 and 2010-11. “Average growth of coal movement through rail is only around 2 per cent during the last three years whereas CIL has envisaged a growth of around 13.5 per cent through rail for achieving above target,” it said.
The company had revised its production target for the financial year 2010-11 from 460.50 MT to 440.20 MT recently. However, according to top CIL officials it may even miss the revised target too. “Production has dipped due to non-clearance of projects and no-go classification by the environment ministry. We may cross the last year’s level of 431 MT,” N C Jha, Chairman and Managing Director (CMD) of the company told Business Standard recently.
Meanwhile, the company saw a 100 per cent rise in its research and development (R&D) expenditure during the financial year 2010-11. It increased from Rs 15 crore in 2009-10 to Rs 30 crore last fiscal.
The MoU was formulated on the guidelines by Department of Public Enterprises to evaluate the performance of the CPSE at the end of the year and also the targets fixed in the beginning of the year.
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Though the Kolkata-based firm will not witness an increase in output, it is expected to see nearly 15 per cent rise in profit after tax (PAT) to Rs 11,000 crore, as against Rs 9,600 crore during the last financial year.
“Our PAT will to Rs 11,000 crore. This additional revenue will come from the recent price revision and through the extra revenue from e-auction,” Jha had said. “Our average premium from e-auction is more than 56 per cent than the notified price,” he added.