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Coal India Limited’s, whose April-September output fell 6% because of floods and labour problems as against a 7% rise a year ago, would miss its production target this year. ICRA Ratings has estimated that production will fall short by around 55-75 million tonnes resulting in a Poor rating. ICRA analyst said “In order to achieve the targeted annual coal production or produce anywhere close to the annual guidance of 660 million tonne, Coal India would have to step up production to the average of 2.3 million tonne per day for the rest of the year. This looks unlikely, given that in recent times, the central miner has been able to briefly sustain its 2 million tonne per day average production rate only in March 2018 and March 2019.”
According to an agreement Coal India signed with the coal ministry, if the company manages to produce 660 million tonnes of fuel this year, it would be rated Excellent’ and if it secures 80% of its target, the rating would be Very Good’.