BUSINESS
Coal ministry mulls reducing production; may even force CIL to slash prices as stocks rise and storage space runs out
Coal ministry may force Coal India Ltd (CIL) to slow down production rate and may even cut prices to clear mounting stock as store space is running out fast, minister Piyush Goyal said.
It is problem of plenty for Coal India now, and far cry from days when the government in its zeal to secure supply security for upcoming power plants talked about 1-billion tonne production by the public sector behemoth by 2020.
With power plants not finding enough buyers for their production and with stockyards overflowing with coal, not to mention the infrastructural bottlenecks in connecting all mines to rail network, petering production and even reducing prices are some of the possibilities that coal and power minister Goyal discussed with CIL chairman Sutirtha Bhattacharya on Thursday.
"We are struggling to see how we can sell more coal quickly so that we can liquidate some of the stock and bump up production because we have come to a situation where we don't have any more ability to stock coal. And I actually see before my eyes a situation where we actually peter down the coal production because of our inability to be able to market that coal in greater number," Goyal said.
Goyal also spoke to the chairmen of other subsidiaries like Central Coalfields Ltd, who requested the minister to generate demand for their rising stocks.
"During our conference call to CCL chairman, I was requested to create market for its coal and get the coal evacuated from the stockyards," Goyal said while addressing a meeting of Indian Chamber of Commerce.
Till December, Coal India has produced 373.45 million tonne, a growth of 9.6% year on year.
Coal and power minister's comments come at a time when there is growing demand to revise coal prices downwards in light of realities in the global market where price of the fossil fuel is on a secular downswing.
Government even directed Coal India some months back to bring down prices of some grades following pressure from discoms (distribution companies) and consumer groups.
As per Central Electricity Authority Data, coal stocks with power plants have doubled to 30 million tonne on year on the back of lower production.
"We are being criticised for power plants running at 60% of generating capacity. But this has happened because 30,000 mega watt of power capacity has come into operation in the last 20 months," Goyal said.
This, he said, is better than power projects remaining stuck and stranded, and then turning up as potential non-performing assets for the banking sector.
"Unless we demonstrate to investors across the world that we have sufficient power capacity, they won't come and invest in India," Goyal said, justifying excess thermal power capacities at a time of low demand.
Shah Rukh Khan's mentor Eric D'Souza passes away, actor said he is 'the only man in the world...'
DNA TV Show: Does Lawrence Bishnoi want to become the king of Mumbai's underworld?
BCCI scraps Impact Player rule from THIS major tournament after retaining it for IPL
PAK vs NZ: India knocked out of Women's T20 World Cup after New Zealand beat Pakistan by 54 runs
Air Pollution: GRAP Stage-I imposed across Delhi NCR, here are do's, don'ts to follow
What is Lawrence Bishnoi's sheild? How his gang claims high-profile targets across India?
Delhi Air Pollution: Govt imposes GRAP Stage-I across NCR as air quality remains 'poor'
India to withdraw high commissioner from Canada, expels 6 Canadian diplomats
Comedy Nights with Kapil-fame Marathi actor Atul Parchure passes away at 57
Jammu and Kashmir: Omar Abdullah to take oath as CM on THIS date
Mukesh Ambani led Reliance Industries' net profit slips by 5% to Rs 16563 crore due to...
Mukesh Ambani's Jio Platforms partners with THIS company, set to offer...
Blending tradition and innovation, Nisschal Zaveri reimagines ghazal music
This is world’s largest cargo plane, can carry a maximum payload of 51000 kg, its size is…
Gautam Adani’s Rs 36979734000 project in Sri Lanka faces BIG risk as new govt to...
Hyundai Motor India IPO opens tomorrow;10 points to know
What is 'Dabba Calling' technique, which Lawrence Bishnoi use to run his gang from jail?
Sylvi Diwali Delights Sale: Brings Luxury Wristwatches at Exclusively Festive Prices
The SEO Expert's Take: Alekh Verma On The Latest Google Trends
Mumbai: CM Eknath Shinde's big move, no toll tax for THESE vehicles at all 5 toll plazas
Even as Giant ‘Chopsticks’ Snag Starship’s Booster: Beginning of new era in rocket recovery
Meet man who left high-paying job at Google, scored highest marks in UPSC history, serves as...
Reliance, Adani, Tata's big move: These among other companies to invest Rs 6,72,43,36,00,00,000 in…
5 companies that made Gautam Adani a billionaire
SBI Card, ICICI Bank, HDFC Bank make big changes to credit card rules, know details here
7th Pay Commission BIG update: DA hike before Diwali? Here’s what we know
Meet Arshia Siddique, murdered NCP leader Baba Siddique's daughter, doctor by profession, is also...
Air Hostess opens up about the 'dark side' of flights, shares SHOCKING details
Narayana Murthy's Infosys earned Rs 6913 crore in just 5 days from...
Delhi Air Pollution: AQI turns 'poor' after festive celebrations, know when will it improve
Meet woman, former model who left Rs 18 lakh job, now runs business worth Rs 30000000 , she is...
Former Maharashtra CM Uddhav Thackeray admitted to HN Reliance Hospital
NASA set to launch Europa Clipper mission to Jupiter today, here's all you need to know
Delhi govt imposes ban on firecrackers till January 1 to combat air pollution
'Rs 20 Crore Toh Rakhna Padega': Ashwin's reply to fan who wants this player in RCB
26 poorest countries in debt since 2006, financial shape increasingly vulnerable: World Bank
WhatsApp New Updates: Know all about creating call links, Imagine feature
Why Jimmy Tata was not chosen to succeed Ratan Tata’s legacy?
Is Ranbir Kapoor getting married again? Well, there's a twist
Egg vs Chicken: Evolutionary science reveals what came first
Meet man whose father is among India's richest, manages operations of India's largest...
Scientists claim 2 people communicated in their dreams in world first
Prime Minister Internship Scheme: Over 9000 opportunities from these TOP companies
After Air India, Mumbai-bound IndiGo flight gets bomb threat
JEE Main, NEET UG, CUET 2025 Exam Dates: When, where to check NTA exam calendar online
Techie walks out of interview after being asked to draw Indian flag, here's what happened next
Women's T20 World Cup 2024: Pakistan to help India qualify for semifinals? Here's how
Malayalam actor Bala arrested after ex-wife Amrutha Suresh files harassment complaint
Ratan Tata changed fate of THESE companies, are now globally recognised brands, they are...
SpaceX's historic milestone, catches giant Starship booster mid-air while landing, watch viral video
THIS team has most centuries in T20I cricket, not Australia, England, it is…
Air India Mumbai-New York flight diverted to Delhi after bomb threat
Deepika Padukone's trainer shares 5-minute workout plan to stay fit during festive season
Tamil Nadu Rain: Orange alert issued in Chennai, neighbouring states likely to see heavy downpour
Big challenge for Mukesh Ambani’s Jio, Sunil Mittal's Airtel from BSNL's under Rs 350 broadband plan
Pakistan Under Lockdown: No schools, colleges, ban on marriages till 16 October due to...
Bigg Boss 18: Triptii Dimri says she has ‘grown up’ watching Vivian Dsena’s shows
Mukesh Ambani's superhit plan for Jio users, 2 new recharge plans announced with unlimited 5G data