CIL's production moderates to keep pace with demand

    Kolkata, Apr 13 (PTI) Coal India has moderated its
production in April keeping in mind the demand and fire hazard
threats at mine pitheads and power plant stockyards in summer
months, an official said on Monday.
    In the first 11 days of April, the average daily
production stood at 1.3 million tonne as against 2.7 million
tonne for the month of March, the official said.
    Cumulative production in this month till Saturday last
week was 14.50 million tonne and an offtake of 14.70 million
tonne indicated that the miner was producing in line with
demand.
    For the new fiscal (FY'21), the company had earlier
set a production target of 710 million tonne based on previous
goals.
    "Coal production is normal but it has to be done
considering several factors like offtake, demand situation and
limitations of the stock as the fuel is a high combustible
item," the official said.
    Coal stocks in the country now stand at 120 million
tonnes.
    Pithead stock of around 75 million tonne and 45
million tonne of coal available with thermal power plants are
sufficient for 28 days, the official said.
    Demand for the dry fuel has plummeted from power
plants and the requirement of non-power consumers has also
been impacted due to lockdown as plants are either closed or
running at lower levels, he said.
    According to the official, the miner has maintained
supplies and offered relaxations to its customers despite
default by some generating companies.
    The company has also extended the time limit for
payment of coal, booked by its customers, by two more weeks
till April 21 from April 7 announced earlier.
    The long pending demand of Usance LC is now
implemented as an additional mode of payment along with
Irrevocable Revolving Letters of Credit (IRLC) for the coal
supplied to power producers, especially independent power
plants.
    This will help the cash strapped power producers avail
credit facility through their banks to tackle liquidity
crunch.
    CIL has also extended the validity period for lifting
of coal under all auctions without any penalty.
    Earlier, failure to lift the ordered quantity of coal
within a stipulated time attracted forfeiture of earnest money
deposit under auction schemes. Now, this clause has been done
away with till the closure of the lockdown period to non-
regulated sector as well.
    The company closed fiscal 2019-20 with annual coal
production of 602.14 million tonne achieving 91 per cent of
the target.
    It had recorded an all time high of 84.36 million
tonnes coal output during March the last month of FY'20. PTI
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(This story has not been edited by THE WEEK and is auto-generated from PTI)