SECL registers negative growth in coal production for 4th successive month

Coal India subsidiary South Eastern Coalfields Limited (SECL) has registered a negative growth in coal production for the fourth consecutive month in November, a drop which the firm attributed to monsoon rains and other factors. This fall in production may cast a shadow over the firm's coal production target set for the financial year 2024-25 (FY25).

 

The Chhattisgarh-based firm produced 13.3 million tonne (MT) coal in November, which is 9.9 per cent less than 14.8 MT produced during the corresponding period of last year.

 

Since August, SECL’s output has been in red.

 

In October, SECL monthly production dropped 11.1 per cent to 12.4 MT compared to previous year.

 

Though the production figure of September 2024 is not available in CIL site, officials said SECL’s production was no better. In August, the output dropped over 28 per cent as SECL produced 8.5 MT compared to 11.8 MT extracted during corresponding period of previous year.

 

“In mega projects, we are operating in small pockets due to land constraints. During the rains, production was badly affected from these mines,” SECL spokesperson said.

 

One of their mega projects Kusmunda is short of land and environmental clearance, he said adding that the required clearances were likely to get in next few days. The SECL has set a production target of over 50 MT from the Kusmunda mine. 

 

Concerned with the decreasing production in the company, CIL Chairman P M Prasad landed in SECL headquarters located in Chhattisgarh’s Bilaspur district. He visited the mines and held a high-level meeting in which even project officials were invited.

 

The CIL chairman discussed the production plan for the remaining days of the financial year with the mine management and also gave necessary guidelines for improving the quality of coal.

 

The possibility of SECL meeting the target for FY25 or retaining its lost position appears bleak. The company was CIL’s largest coal producing company till 2020-21. Its output, however, dropped to 142.5 MT in FY22, only to be overtaken by Odisha-based Mahanadi Coalfields Limited (MCL) with coal production of 168.2 MT. 

 

While the cumulative production of MCL has registered an annual growth of 11.3 per cent to 125.3 MT till November in the current fiscal, SECL’s output during April to November dropped by 8.7 per cent to 97.2 MT.

 

In the last financial year 2023-24, SECL achieved a record coal production of 187 MT. For the financial year 2024-25, SECL has been assigned an annual target of 206 MT of coal production.