Western Coalfields exceeds its annual target

Western Coalfields Limited (WCL), a miniratna, has exceeded its annual action plan target of 42 million tonnes by achieving a record 43.212 million tonnes for the year 2006-07. This was the target that the coal company was earlier scheduled to achieve in 2008-09.

Addressing a press conference here, chairman-cum-managing director of WCL, G S Chug said the turnover of the company during the fiscal was estimated at Rs 4,947 crore against the budgeted Rs 4,736 crore. The net profit for the year was expected to be substantially higher than the budgeted Rs 620 crore.

Director, finance, Indrawati Dani, who was also present at the conference, said that it was difficult to give an exact figure at this juncture but the profits could exceed Rs 900 crore.

She accepted that the expected profits were less than the Rs 1,446 notched up last fiscal but said that FY 2005-06 was unusual as the coal company made a windfall in effecting a huge recovery of Rs 200 crore from Chhattisgarh.

Dani attributed the healthy profits to e-bookings which got WCL some Rs 117 crore, savings and not having to make certain provisions. "The quantum of coal production has also increased and realisations were better," she said.

Chug said that the total sales realisation during the year were around Rs 5,136 crore. Dispatches, he said, were 42.17 million tonnes as against a target of 42 million tonnes. The total outstanding dues were brought down to Rs 214 crore from Rs 394 crore as of April 1, 2006. Most of the outstanding dues were towards Madhya Pradesh State Electricity Board (MPSEB).

The CMD said that the coal company had maintained its status as the top corporate tax payer in Vidarbha having paid Rs 593 crore to the Income Tax department for the financial year 2006-07. Royalty, central and state taxes amounted to an outgo of Rs 620 crore during the fiscal.

As a part of its rationalisation effort, WCL?s manpower strength decreased by 1,779 during the year. The CMD said that 546 workers opted for the company's voluntary retirement scheme (VRS) against the target of 300. The total manpower strength in WCL as on April 1, 2007 was 65,599 as against an opening of 67,378.

The company is investing Rs 904.28 crore in 23 projects with ultimate production capacity of 14.92 million tonnes. Chug said that this was being done to maintain the coal company?s present level of production and to increase it to 45 million tonnes by the terminal year of the XIth Plan.

The coal company has also identified 32 new projects for development during the XIth Plan period (2007-12). The ultimate production from these projects will be 28.61 million tonnes at an anticipated capital outlay of Rs 2,809.36 crore. Of these, Gokul open cast and Ghughus open cast extension have already been approved during 2006-07.

Eight projects including Adasa UG, Kolgaon open cast (OC), Durgapur Extension (deep) OC, Waghoda UG, Bhatadi OC Expansion, Junad deep OC, Chikalgaon OC, Chinchala OC have been taken up on cost plus basis with the Maharashtra Generation Company (Mahagenco).

Agreement for Adasa and Kolgaon have already been concluded.

Coal produced from these mines is being supplied to Mahagenco. Agreements are likely to be finalised shortly for Durgapur extension, Waghoda, Bhatadi expansion and Junad deep.

Draft report for cost plus agreement with Chikalgaon OC and Chinchala OC has been forwarded to Mahagenco for approval and these too are expected to be inked in a month's time.