Coal India aims at 46m tonne production in December

Coal India Ltd is targeting 46 million tonnes of production in December, up from 39 million tonnes in November to meet its annual production target of 464.10 million tonnes by March, 2013, a top company official said. A production of 46 million tonnes is expected in December, CIL Chairman and Managing Director S Narsingh Rao said on the sidelines of a function.

This would be just close to seven per cent higher than last year's December month production, when around 43 million tonne of coal was produced. Rao also expected there would be no environmental hurdle for the company to meet targets, but hinted that some environmental clearances if not cleared by the month-end could become a cause for some worry.

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Rao said the company was not considering any price hikes as of now, but admitted that the cost of production had witnessed a substantial increase following the diesel price hike in September by Rs 5 a litre. "I don't think there is any such proposal under consideration now... we will see. Time to time we take stock of the cost of production and then decide," he said.

Diesel formed a major cost component in coal production and would impact Coal India by Rs 500-600 crore, Rao had said.

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