The government, on the back of improved rake availability, has achieved the feat of optimum coal supply at power units after a gap of 600 days. It recently declared no power units in India had critical coal stocks (of less than seven days).
Coal India will fetch the Centre around Rs 19,000 crore on account of dividends paid and shares sold through various modes by the end of 2018-19 — almost double that of last year.
Coal India’s standing with investors as a ‘dividend play’ could take a beating after the near-monopoly government miner declared interim dividends that fell below Street expectations.
The adverse impact from coal-fired power plants on public health is the highest in India globally, found a recent study. And while campaigns continue to highlight the ills of coal mines and thermal power plants, the Indian government is giving a boost to the coal sector.
Despite being a monopoly player, Coal India’s profits have been falling due to the ever-increasing labour expenses, supply-chain delays as well as spiralling operational costs arising out of the company’s rehabilitation policy
The production target for Coal India (CIL) was fixed at 610 million tonnes for the current fiscal. This target is likely to be missed as coal production during April-February was 527.70 mt.
After receiving more than Rs 11,500 crore from Coal India, the centre is further expected to receive around Rs. 2,600 crore more from this Maharatna company after the mining mammoth has decided to offer its second round of interim dividend at Rs. 5.85 per share.
Coal India will hold a third round of auctions for giving out longterm fuel supply contracts under Shakti B(ii) where participants of the first round would be eligible to bid. They are, however, barred from the second round which will be held soon, a government official clarified.
Coal India on Thursday declared second interim dividend for FY19 at Rs 5.85 per share. The date of payment of dividend is on and from March 29 this year, the state-run company said in a regulatory filing.
Coal imports by state government-run power producers were up 2.6-fold in the first 10 months of the current fiscal as domestic supply dwindled, but overseas purchases by private generators and central entities declined 2.5% during the period.