Coal India hikes production target by 7.7 percent

Kolkata, Aug 28 (Inditop.com) State-owned Coal India Ltd (CIL) has increased its production target for the current fiscal by 7.7 percent, a top official said here Friday.

“Last year, our production growth rate was 6.4 percent. This year, we have set a target of 7.7 percent,” said CIL chairman Partha S. Bhattacharyya at the annual general meeting of the Indian Coal Manufacturers Association.

He said so far CIL, the largest producer of coal in the country, has been able to meet the country’s demand for the feedstock, which is primarily driven by the power sector.

Bhattacharyya said the coal major could meet the demand as the country had not been able to add the required generation capacity during the 10th Plan period (2002-2007).

But in the 11th Plan period (2007-12), he said, demand would exceed supply for which the production target has been raised.

He confirmed that CIL is gearing up for another round of price hike soon to bridge the widening gap between domestic and global prices and to meet the fund requirement arising due to wage revision.

The last three price rises by CIL were in 2001, 2004 and 2007.