Coal India is producing about 2.3 million tons per day whereas the offtake on best effort basis is about 1.9 million tons because of logistics, says Gopal Singh, CMD, in an interview with ET Now,
With the power sector facing a mountain of troubles and competition from private players, are you worried about slowing offtake?
When we talk about offtake of coal, there are two-three issues. One is of course the coal should be available at the mine head. Second is logistics, how much of this available coal can be transferred to the power plant and third is demand. Right now, there is demand and there is sufficient coal at mine head.
As on date, if you look at stocks, it is 44.59 million tonne and the minimum level we had within this financial year was 29 million tonne. So, during last three-four months, we have added about 15.4 million tonne of stocks, an inventory which no company desires. But because we are not able to increase beyond say 1.9 million tonne because of the logistic issues and we have some commitment, we are continuing production though we are restricting it but at a respectable level. We are producing about 2.3 million tonne per day whereas the offtake on best effort basis is about 1.9 million tonne because of logistics. Read More…