Officials say the Kovid-19 disruptions reduced Minor’s demand to reduce production.
The world’s largest miner, Coal India, is expected to make a slight contraction of its production for the year 2020-21, increasing by 5-6 million tonnes in 2020-21, as its production will fall below the 600 million mark.
In 2019-20, the miner produced 602 million tonnes from 606.9 million tonnes in 2018-19, when it recorded its highest production.
This will be the second year in a row when the miners register below. The miner had estimated a production target of 660 million tonnes and by mid-year the company was expecting to achieve 630–640 million tonnes of production.
Officials attributed the Kovid-19 disruptions as the major factor behind the reduced demand that led to the construction of the stockpile, forcing the mining giant to moderate production.
Sources said that by March 27, production is expected to be 585 million tonnes and 11 million tonnes.
The offtake for the year is expected to be around 577 million tonnes.
The inventory with Coal India stood at around 77.8 million tonnes by the end of February as compared to 66.8 million tonnes at the end of January 2021.
Domestic power plants are well stocked with coal supplies. The coal stock in power plants stood at 31.9 million tonnes at the end of February, enough for the previous 17 days. This has resulted in a fall in coal prices for the third straight month. During February 2021, coal sales declined by 7 per cent year-on-year. PTI BSM JRC MM MM
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