Coal India's subsidiary opens three new mines, aims for 710 MT production in FY21E
Subsidiary of Coal India Limited, Western Coalfields Limited (WCL) recently announced that it newly opened three coal mines in states of Maharashtra and Madhya Pradesh, of which the estimated addition of production capacity is 2.9 million tonnes (MT).
WCL is the wholly-owned subsidiary of Coal India, headquartered at Nagpur, Maharashtra. It accounts for nearly 10 per cent of total annual coal production of Coal India Limited. The company has planned to assist the project via capex of Rs 849 crore. The eventual goal of the added mining fields is to take the production capacity to 75 MT per annum by FY23-24. As of FY20 end, the production from WCL stood at 57.64 MT having overtaken 52.58 MT.
On a consolidated level, Coal India has given guidance of 710 MT coal production during the current fiscal year despite impending challenges from the economic slowdown and resultant 'demand-supply' status for the year. As per the production data it released lately, there was a drop in production of 11 per cent YoY for the first two months.
The company's stock is trading at Rs 144.12 at 11 am on Tuesday, down by 1.6 per cent on BSE.