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Coal India misses ministry target

Calcutta, April 9: Coal India Limited (CIL) has registered a profit before tax of Rs 6825.54 crore in 2004-05, even though it has missed the production target of 331 million tonnes set by the Union coal ministry.

In 2003-04, Coal India had achieved a net profit of Rs 4889.16 crore.

Coal India had set a production target of 314 million tonnes for 2004-05. It has surpassed its own target and has achieved a production figure of 323.64 million tonnes.

Coal production in 2003-04 was 306.36 million tonnes. In 2004-05, it has increased by 17.28 million tonnes ' a growth of 5.64 per cent over the previous year.

Coal India officials said the ministry revises its target from time-to-time. 'But we cannot increase the production suddenly. It needs a lot of planning in advance,' they added.

For 2005-06, Coal India has set a production target of 343 million tonnes, which the officials feel is highly achievable. The profit before tax has been pegged at Rs 9,000 crore in this fiscal.

Officials said the raw coal offtake during 2004-05 has exceeded the target. Coal India has achieved an offtake of 321.30 million tonnes against a target of 315.05 million tonnes.

Coal offtake has increased by 16.86 million tonnes from the previous year's achievement of 321.30 million tonnes compared with the target of 315.05 million tonnes ' a growth of 5.54 per cent.

Nearly 78 per cent of Coal India's produce is consumed by the power sector. Coal India has despatched 249.04 million tonnes of coal to the power sector during 2004-05, which is 8.96 million tonnes more than the target and a growth of 6.4 per cent over the previous year.

Growth in despatch to power utilities and National Thermal Power Corporation (NTPC) in 2004-05 is to the tune of 14.99 million tonnes over the previous year.

Coal India has been able to achieve a sales realisation of Rs 31,423 crore against Rs 28,000 crore in the previous fiscal.

The productivity has been 3.06 tonnes against 2.82 tonnes for the corresponding period of the previous year. Productivity in both underground and open cast mines has improved. Underground productivity improved to 0.78 tonnes while that of open cast improved to 7.26 tonnes from 6.67 tonnes.

Meanwhile, to contain hoarding and black marketing of coal, the government has allowed Coal India to sell 10 million tonnes in the current fiscal through e-auction to non-core consumers.

The existing system of coal supply to the non-core sector, which has about 3,000 consumers, through the system of linkages at notified prices was resulting in diversion of coal in the premium market.

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