8-fold profit growth in Sept quarter, but legacy issues haunt Coal India

A mine rationalisation drive is underway, which will either shut down unviable mines or merge a series of small mines to come up with a single coal block and acquire new mines

Despite an eight-fold increase in net profit at Rs 30.85 billion for the quarter ended September, and a 10 per cent increase in production this year, Coal India (CIL) continues to consistently miss the ministerial targets every month. In turn, this coal shortage has led to 30 thermal power plants being categorised as critical or super-critical.

Last week, during CIL’s annual day celebrations, coal minister Piyush Goyal expressed his concern that the 10 per cent growth rate may slip into a single-digit growth rate, adding the growth rate isn’t enough.

After the NDA government came to power, the coal ministry