Northern Coalfields, only CIL subsidiary to arrest falling production

KOLKATA: Northern Coalfields is the only CIL subsidiary that managed to arrest falling production in April and May, when the group as a whole registered more than 10% fall in production during the Covid-19 slowdown.

NCL, the Madhya Pradesh based, coal producer produced 8.73 million tonnes of coal achieving 96% of the month’s targeted production and managed to arrest fall in growth against the previous corresponding period when coal production was impeded in many subsidiaries.

NCL, is the third largest coal producing subsidiary and it contributed to 18% of CIL’s overall coal output of 602.13 million tonnes during 2019-20. For two successive financial years NCL achieved its production target four days ahead of the closure of the fiscal. For FY 20 NCL’s production was 108.05 million tonnes, 102% of its target.

During the first 15 days of May, NCL produced 4.32 million tonnes clocking 2.5% growth for the comparable period last year. It was the only CIL subsidiary to have registered growth. NCL is targeted to produce 113.25 MTs during the current fiscal entailing a growth of 4.8%.

“Generally, the pace of production for coal companies pick up during the second half of the fiscal and especially in the fourth quarter. With growth trend under its belt NCL could sail past target this year as well” a company executive said.

NCL has been concentrating on top soil removal necessary for exposing coal seams and increasing production when demand picks up. During April, the subsidiary removed 29.33 million cubic metres of top soil which was a 6.8% growth compared to same month last year. During the first 15 days of May’20 it registered a 15% growth in topsoil removal.

“The process of removing topsoil and stones is an important performance criterion as it improves the mine geometry and exposes coal seam for future mining. It also makes mines safer to operate,” an executive said.