Mining major Coal India Ltd is keen to tap non-power consumers to feed its incremental production post the monsoon period, a senior company official has said.
The miner is looking to ramp up production to meet its targets for the current fiscal at a time when the economic slowdown is impacting demand for the dry fuel by power plants.
“CIL is eyeing non-power consumers for incremental coal, as the slowdown has resulted in lower electricity demand. We are also offering some relaxation in payments and evacuation to encourage better lifting of coal,” the official told PTI.
Coal despatch to the power sector in the first nine months of the current fiscal was down by 8.1 per cent at 334.27 million tonnes as against the figure in the corresponding period a year ago.
In December 2019 alone, the decline was close to 2 per cent, officials said.
Coal alloted for spot e-auction, however, was 5.07 million tonnes in December, nearly a 50-per cent jump over the same month a year ago.
The miner is banking on sectors like cement and sponge iron for incremental coal.
Coal India had set a production target of 660 million tonnes for 2019-20, but company officials said the figure is likely to be in the range of 625-635 million tonnes.