Coal India mining projects running behind schedule; stock tumbles 41 per cent YTD
Coal India's 54 mining projects are running behind schedule, mainly on account of delay in obtaining necessary approval and other issues related to rehabilitation & resettlement.
The development assumes significance against the backdrop of Coal India, eyeing production of 1 billion tonnes by 2023-24. The company’s 123 coal projects worth Rs 20 crore and above, are in different stages of implementation out of which, 69 projects are on schedule and 54 projects are delayed.
The major reasons behind the late implementation of these projects can be a delay in obtaining forest clearance (FC), possession of the land, and other issues related to rehabilitation & resettlement.
Meanwhile, looking at the current year data, in the fiscal year 2020, the company has posted subdued performance in production as well as in volume terms.
Earlier this month, the company had announced a plan to invest Rs 1 lakh crore, which would help the company to achieve 1 billion tonnes (BT) coal production by the year 2023-24. The company has planned investment of over Rs 1.22 lakh crore on about 500 projects, which are in direct relation to coal evacuation, infrastructure, project development, exploration, and clean coal technologies.
At the operational front, the company clocked 7 per cent YoY growth in coal production for the month of August. The gains were largely led by Mahanadi Coalfields and Northern Coalfields, which registered a YoY growth of 45 per cent and 8 per cent, respectively in production. Besides, the company reported 26 per cent fall in revenues for Q1FY21.