Coal India On Market's Reaction After Guidance Revision | NDTV Profit
#CoalIndia's Executive Director of Finance, Mukesh Agarwal talks about the markets' reaction after the company's revision of FY24 volume guidance.
Watch him in conversation with Vikas Shrivastav.
For the latest news and updates, visit: ndtvprofit.com
Watch him in conversation with Vikas Shrivastav.
For the latest news and updates, visit: ndtvprofit.com
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TVTranscript
00:00 We have with us Mr. Mukesh Agarwal. He is the Director of Finance of Coal India Limited.
00:04 He will be talking to us about the company's revision in guidance that they have given
00:10 for FY24 and FY25 also. So, sir, there has been a negative impact after the guidance
00:18 was given. What is your view on that? Do you think that the market has taken it negatively?
00:23 What I understand that the market has not understood what the chairman has said in the
00:27 call. Chairman has very clearly indicated that there is a lagging of 10 to 12 million
00:32 ton coal in the SEC, whereas other companies are making shortfall good of this coal. So,
00:40 it is guaranteed that we will achieve 770 million tons, but it is not that he said that
00:45 10 million ton will be reduced. He also said that other companies are increasing 1 million
00:50 tons, so it will offset. So, lastly, this is not that fully 10 million ton is going
00:56 to be shortfall, but he said that it is 770 million tons we will achieve. This is the
01:02 rest assured, which is more than 10% of the last year production. People have not underlined
01:07 that 10% more from the previous year production, the coal is going to be happy. And regarding
01:16 FY25, what the chairman has said that we have reduced from 850 million tons to 838 because
01:23 of the piling of the stock at the pit head and the power plant. And if required, we can
01:31 go with our initial plan. That is the thing what I had said. And number two, what is the
01:36 major reason of shortfall people has, I think, factored 100% premium as was it in the last
01:43 year on the e-auction. That was because of the global sector. Now, premium depends on
01:49 the demand and supply. So, this year premium is not at the level at which we are expecting.
01:54 So, that people has factored. But the things will go as per the market demand and conditions.
01:59 Thank you.
02:00 So, basically, you are hopeful of achieving this 1 billion target that you all had projected
02:05 for FY26 and that is there, aren't you?
02:07 Yes, that will go as it is. There is no correction in that. We are adhering to our earlier commitment.
02:13 So, once I think we reach 1 billion ton capacity, there is possibility that we might also look
02:19 at non-regulated sectors to supply to that. So, what kind of surplus we can look at after
02:25 1 billion ton happens from non-priority sectors?
02:28 Right now, I won't have a data for this non-regulated sector. But one thing what I can say, as the
02:33 production is going to increase, similarly, the demand is also going to be increased in
02:38 the market. Seven gigawatt, 70 gigawatt more thermal power plants are coming. Number two,
02:44 that industrial infrastructure demand is going to be increased where the more power will
02:48 be required. And domestic consumption is also going to be increased. As the economy is growing,
02:53 people are living, standard is going to be high. So, there is ample opportunity to absorb
02:58 this 1 billion ton coal in the country itself.
03:02 And today, the Ministry of Coal, they have launched this new coal gasification plant
03:07 plan where they are providing 8,500 crore rupees VGF also. So, how much coal can Coal
03:13 India provide under this scheme?
03:17 This will depend on the linkage of what we, the bidders who is coming to bidder, whether
03:22 they have blocks or not. If someone is having already blocks, they will not require. But
03:27 I think there will be linkage will be provided by the Coal India as per the requirements
03:31 of the bidder.
03:32 And this linkage would solely be for gasification plants?
03:35 Yes, it will be for the solely for the linkage.
03:40 Recently, you all had announced your plan for entering into renewable sector also of
03:45 5 gigawatt of capacity that you are looking to set up. So, what is the current status
03:49 and how you are planning to go about?
03:51 Company is aggressively bidding for the different projects. We are talking with the different
03:55 governments. Recently, company has backed 300 megawatt solar project at Khawala. And
04:01 company is also in talks with the Rajasthan government for 1,190 megawatt for in solar
04:08 power Fugal. So, these are the plants which we are working. And for others, we are aggressively
04:14 discussing with the different state governments for the creation of the solar renewable plants.
04:21 So, as of now, you said how much capacity you have?
04:25 Presently, commission is not. But we are working at present at 2,000 megawatt.
04:31 And where exactly is this project happening?
04:36 1,190 we are looking at Rajasthan, 300 at Khawala. And other projects we are looking
04:43 at different states.
04:46 And one last question on overall capacity expansion plans or CAPEX investment plans
04:51 that you have for this FY25?
04:55 We had already...
04:56 24, how much you have already?
04:57 16,500 is our CAPEX target. We are going to achieve definitely 16,500. Next year, our
05:04 CAPEX target is 17,500 crore rupees is there. And we will adhere to this.
05:12 Thank you.
05:14 (upbeat music)