Coal India postpones year-end coal stock measurement amid COVID-19 spread

Kolkata: Coal India has postponed its annual stock measurement from April 1 to April 15, following advisory issued by the government and cancellation of train movement due to threat posed by outbreak of pandemic COVID-19.

Every year, the company engages an external agency to take stock of inventory at some 360-odd mines operated by its seven coal producing subsidiaries. The exercise is related to ascertaining annual accounts of the company.

This time, following spread of Coronavirus , the exercise will be completed on April 27. According to a notice issued by the company, physical stock measurement is to be completed within seven days, by April 22. Reports will have to be submitted to subsidiaries by April 25 and final report has to be submitted to Coal India by April 27.

Coal India is also working on the possibility of using drone to measure its inventory to accumulate data faster. The project was postponed as an initiative to stop leakages and strengthen the company’s balance-sheet. Over-reporting in production has an inflationary effect on the company’s earnings.

Coal stocks at pitheads was recently estimated at 51 million tonnes (on 11 March 2020)