State-run Coal India may end fiscal year 2011 below its projected production targets. The company has not been able to capitalise on an increase in demand owing to production issues. Constraints posed by the Ministry of Environment and Forest's new index - CEPI - have hit the company, which came out with India's largest ever IPO last year, hard as the index alone has led to a cut in its production by over 15 million tonne.
Speaking to CNBC-TV18, Chairman Partha S Bhattacharyya confirmed fears that the company may end with the lower than targetted 460 million tonne for the current fiscal. "Environmental issues may lead to a miss in production growth targets," he said. On issues regarding mining with the environment ministry, Bhattacharya believes that both the government and the company will have to work hand-in-hand. He expressed his confidence that the issue regarding mining will be settled with the environment ministry. With the production targets set to be missed, he also sees issues in power generation ahead, since coal is required for generation. The chairman of India's largest coal company expects sales growth of 3.5-4% in Q3 of this fiscal. Below is a verbatim transcript of Partha S BhattacharyyaDiscover 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!
