News Brief | February 2013
CIL supplies more coal in Apr-Dec 2012
State-run coal producer Coal India (CIL) has so far supplied approximately 26 mn t more coal during Apr-Dec 2012-13. The company has set a target of raising its supply by 37 million tonne (mn t) during 2012-13. However, the firm has reportedly sold around 30 mn t coal through e-auction during April-December 2012, lesser than the auction sales in the comparable period in 2011. This may reduce the profit opportunity of the monopoly coal producer by approximately Rs 500-600 crore in 2012-13. But some analysts feel that this may not impact the company's profit growth as lower revenues from e-auction will be compensated by a robust growth in overall sales. With the sharp decline in open market price of coal, industry watchers feel that lower spot sales may not affect consumers - primarily the iron and steel and, cement sectors.