The ongoing strike continued for two days has hit the Coal India Ltd. Sensex in an adverse manner which saw its shares sloping down by 50%. The government of India proposed a halt over the nation-wide strike which started off 5 days ago imposing the trade Union to call it off as soon as possible. The affect have been in a negative way as the stakes of CIL crashed at NSE as well as BSE.
The company’s production fell adversely thus stating as it might not cover up its target of 507 million tonnes in the financial year of 2016-17. On the other hand Piyush Goyal, Coal Minister of India gave a statement regarding production upto 1 billion tonnes by the end of 2019 along with the support of the Union. However, Coal India has already missed the target of generating 469 million tonnes for current quarter thus producing only 422 million tonnes till date.
After the dissolution of the strike after 5 long days, the union resu,ked to work with duoble the challenges to acheive the target of producing 507 million tonnes by the end of fiscal year. The strike was called it off late on Tuesday night thus to resume work and meet the target in a leap frog manner. The financial terms during the strike faced hefty loss in terms of production which will be most probably evaluated on March 31, 2015.
Accroding to Piyush Goyal, Coal Minister, Government’s ambitious plan of reforming the coal sector which includes CIL’s disinvestment and opening up the segment for private entities, will go ahead as per schedule. There is absolutely no change in any of our plans.
In further move, he stated that there is no way to denationalise Coal India which will certainly remain a part of governement and if still any concern is subjected it will be definitely aprrehended in every concern. AS of now, the production is in place with double action plans along with transformation process which is to be initiated very soon.