The initial target set by Coal India, a Government-owned operation, was to produce 710 tonnes in FY21.
Like almost every other industry, Coal production has also taken a massive hit due to the Coronavirus. This has resulted in a drop in demand thus affecting the business of Coal India. Therefore, Coal India had to revise its output target to 650 tonnes in FY21.
At a webinar organized by Bharat Chamber of Commerce, Coal India Chairman Pramod Agarwal said, “Covid-19 pandemic has affected demand for coal. However, demand has started to pick up now as the industries have commenced operations. Given the situation, we are hopeful to end the year with 650-660 million tonnes of production.”
Not just production, the pandemic has also had adverse effects on the stock prices of the state-owned enterprise, Coal India’s stock has underperformed Nifty’s 7-8% benchmark.
