Coal India shares fall sharply on possibility of missed targets
A Coal India official, citing "serious problems" at the Mahanadi coalfields (MCL), told PTI that the company may miss its production target by 20 milllion tonnes. Coal India, the official noted, may end up producing up to 578 million tonnes this fiscal as opposed to the earlier target of 598 MT, due to a string of issues including lower offtake, inventory management challenges, and so on. The news contributed to a sharp fall in Coal India's prices today, with shares down 6.63% at market close. The Mahanadi coalfields have been a continuing problem for CIL over resettlement and rehabilitation of the people who used to live on the land. Coal India had tried to address this by increasing the compensation for displaced families from Rs. 10 lakh to Rs. 16 lakh end of last year. Based on the latest numbers however, an estimated 5,000 people in the area are awaiting resettlement. The Odisha government wants Coal India to start mining only once the resettlement issues are settled.14-03-2017