Coal India to ramp up production to 9% from current 6%
Coal India on Thursday said it expected to ramp up its production growth to 9% from the current level of 6% despite its May deliveries being impacted by law and order issues.
June 02, 2011 / 14:38 IST
Coal India on Thursday said it expected to ramp up its production growth to 9% from the current level of 6% despite its May deliveries being impacted by law and order issues.
This has caused CLSA to up Coal India's target price to Rs 460 from Rs 330 earlier.On the shortage of rakes for transportation of coal, Coal India said it is hoping to get 190 rakes per day by June and added that rake availability is not an issue at the moment.On Tuesday, coal minister Sriprakash Jaiswal had said that Coal India was willing to arrange for the purchase of rakes if the railways are facing funding constraints."If railways agrees, then Coal India can purchase 20-25 rakes provided it is solely used to load coal," he had said.Sriprakash Jaiswal had also rejected the power ministry's proposal of stopping e-auction of the dry fuel, saying the electronic route for selling coal needs to be continued for meeting the demands of small users. (Click here to know more)Earlier, the company, which accounts for over 80% of the domestic production, had said that it faced shortage of rakes for transportation of the dry fuel. The average rakes availability in 2010-11 was 161 rakes a day while in the previous fiscal the figure stood at 156.8 rakes a day.At 10:40 hrs, shares of Coal India were trading flat at Rs 410.80 on the Bombay Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
