Coal India Ltd. is targetting more than 8 percent growth in production at 660 million tonnes in 2019-20 compared to 607 million tonnes in the last fiscal and plans a capital expenditure of Rs 10,000 crore, according to sources.
The target for revenue from operations (net) has been fixed at Rs 1 lakh crore for FY20, they said. The targets were fixed during a meeting between the Coal Ministry and Coal India held recently.
“Coal India had signed the mandatory memorandum of understanding with the Ministry of Coal for its key performance areas for the fiscal 2019-20,” according to sources. “Thus the coal production and offtake target for the year 2019-20 is 660 MT and capital expenditure target has been set at Rs 10,000 crore.”
As laid down in the MoU 2019-20, the Maharatna company has to ramp up its coal production growth to 8.75 percent over the previous year. The company closed 2018-19 with a coal production of 606.9 million tonnes against the target of 610 million tonnes.
Further to make the MoU more comprehensive, production efficiency and human resource parameters have been included. Also, parameter relating to central public sector enterprises conclave are an added features of the MoU 2019-20.
“The MoU for 2019-20 has been formulated on the lines of new Department of Public Enterprises guidelines and finalised after discussions with the pre-negotiation committee and inter-ministerial committee,” source said.
Coal India, which accounts for over 80 percent of domestic coal output, had set an internal aspirational target of 652 million tonnes in FY19, but could not go closer to it as things did not fructify as perceived, sources had earlier said.
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