January 2, 2022 - To meet target, 21.48 MT coal to be extracted in 3 months

The Singareni Collieries Company Ltd (SCCL) faces a daunting task of producing an average of 7.16 million tonnes (MT) of coal every month in the last quarter of the current fiscal to achieve the target of 68 MT, in spite of best of its efforts in the first three quarters by extracting 46.52 MT coal.

The three-day strike by the miners from December 9 to 11 against the Centre’s plans to privatise four mines in the Singareni areas in the first tranche and more in the next tranche has not only impacted the coal production to some extent but has also made the task of production target in the remainder of the fiscal difficult further as the extraction of coal in the first nine months of 2021-22 fiscal is already short by 3.04 MT against the target.

Singareni Collieries faces a tall order in Q4

“Against the coal production of 49.56 MT planned till December-end, the achievement is 46.52 MT in the first nine months and the three-day strike by the miners has also contributed not merely in numbers but in terms of pace of production too,” a senior executive admitted adding that although the coal production in December 2021 was highest for a month in the first three quarters, it was incidentally the only month in which the production was lesser compared to 2020 month-wise.

The three-day strike has not only deprived the company extraction of at least 4.5 lakh tonnes coal but also resulted in financial loss of ?120 crore. “To make up the production loss not only of the strike period but also the short-fall in extraction in the first nine months, the company needs extra and special efforts to reach the year’s target or at least to be in its vicinity”, the executive said.

However, the company could take some solace in the 46.52 MT production achieved in the first three quarters of the current fiscal compared to only 32.65 MT achieved during the same period in the COVID-hit previous fiscal.

In coal dispatches, the achievement has been better at 48.18 MT against target of 49.76 MT till December-end compared to 31.79 MT achieved during the same period last year.