Coal India Limited Falls Short of Targets as it Awaits Rail Links

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--As coal is forecast to be a primary energy and steelmaking feed for the foreseeable future, the link in the supply chain, which transports it from the mine to the power plant, steelworks and export terminal, has become crucial in many countries--and that link is predominantly rail.

In India, the state-owned Coal India Limited (CIL) (Kolkata) has once more fallen short of its coal production target of 49.44 million tons for January with a total of 47.24 million tons. The company also missed the target of 383.88 million tons set for April 2013 to January 2014 by only achieving an output of 366.57 million tons.

CIL Chairman and Managing Director S. Narsing Rao said that previous predictions forecast that India would produce about 5 million tons below its target of 482 million tons in the 2013-14 fiscal year. It was later reported that CIL may have to reduce its target for the fiscal year 2014-15 by 23 million tons.

"The target will be possible only when at least two railway lines in Jharkand and Odisha come up," Rao said. "This has not happened so far. So unfortunately, we are not in a position to say that we can achieve the target."

Adding to the rail transport problems was the disruption caused by cyclone Phailin and law-and-order problems at CIL subsidiaries Mahanadi Coalfields Limited and Central Coalfields Limited.

For related information, see January 29, 2014, article - India's Coal Ministry Slaps Show Clause Notice on Jharkhand Electricity Board, and January 30, 2014, article - Coal Feed Improves for India's Power Generators, but 4.5% Deficit Persists.

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