Coal mining company Coal India Ltd (CIL) advanced more than 2%. The PSU said that India is not facing any scarcity of coal and the output of Coal India is more than the country’s power demand on Monday. The largest producer of coal in the world, Coal India had registered a high growth rate of 28% output in FY17 over the last fisca. Gopal Singh, Chairman and Managing Director said that the average rise in power demand in the country was at 10.3%.
The stock rose as much as 2.66% to the day’s high of Rs 244.7 on BSE today and was the second largest contributor to the gains of the benchmark Sensex. On the other hand, the 30-share barometer was trading 0.33% lower at 31,787.28 points, mainly due to the sell-off in the shares of heavyweight companies like HDFC, HDFC Bank, Infosys, Kotak Mahindra Bank and L&T.
Coal India is now fully capable to fulfill the coal demand in India, MD Gopal Singh said, adding the company has plans to open new mines in the future.
The Magadh coal mine in Jharkhand, the biggest open cast mine in Asia, Singh said that coal output in the mine has been reduced due to dispatch-related problems. This report is likely to increase after completion of the miner’s Tori-Shivpur rail project, he said.
The annual report of India yesterday says that the efforts to buy coking coal mines overseas by state-owned CIL in Australia are in process as the company looks to supplement the requirement of country’s metallurgical coal.