| "We will exceed our production target by at least 4 per cent and the profit is likely to be around Rs 3,500 crore," said Sashi Kumar, chairman. While addressing the problem of non-availability of coal for the non-core sector, Kumar said the government is finalising a proposal whereby supply of coal to this sector will be guided by a formula but that will take some time. |
| CIL also hopes to surpass its targeted coal production by almost 5 per cent this year to 303 million tonne. CIL produces about 86 per cent of total production, and Singareni Collieries Company Ltd produces 8 per cent. Production target for 2004-05 was pegged at 314 per cent. |
| Talking on the subject of beneficiation of coal, Kumar said we are not in a position to finance coal washeries but we can provide the infrastructure that will facilitate investment in the sector. |
| The chairman also informed that CIL had invited expression of interest from parties willing to set up washeries where power, land and water will be provided by the former, at a nominal cost. "We have received as many as 103 expression of interest," he said. |
| Talking on the demand supply scenario in the country, Kumar said the planning commission had projected that against an estimated demand for coal by the end of the 10th plan of 460 million tonne, the domestic supply of coal would be around 405 million tonnes which was likely to result in a supply gap of 55 million tonnes. |
| By the end of the 11th Five year plan, the gap was likely to rise to 95 million tonnes with domestic production being close to 620 million tonnes. |
| "New project in the pipeline that are likely to be commissioned in few years will supply an additional 51 million tonne of coal. Despite the fact that these projects will be delayed by over a couple of years, we are hopeful that we will be able to meet the projected increased demand for coal by the end of the five year plan," he said. |
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