The impact of COVID on the coal business of Singareni Collieries Company Ltd is likely to be much deeper than expected this financial year, although coal production has crossed the five million tonne mark in a month for the first time in December. Production of coal in the first nine months of the fiscal remains over 30% less compared to the last financial year and it’s 33% less against the target set by the company for 2020-21. In the backdrop of economic and industrial activity coming back to near normalcy, the company management had planned to produce 6.2 million tonnes of coal in December. However, the production achieved during the month was 5.72 million tonnes. Realising the fact that even meeting the last year’s production of 64.02 million tonnes is not possible practically as the production in the first three quarters of the fiscal is only 32.66 million tonnes, the company has decided to make the most of the remainder of the financial year so that business loss is controlled as much as possible.
In dispatches of coal to customers too, the company is lagging behind its plans and targets with over 31.4% lower achievement in the nine months of this fiscal compared to the same period last year. For December, the company had plans to send 5.73 million tonnes to its customers but could go up to 5.27 million tonnes itself, mainly due to low off take from the customers.