Coal India Targets 788 MT Production, Rules Out Price Cuts

Kolkata, Mar 3 (PTI) Coal India Limited (CIL) is expecting production of 788 million tonnes (MT) and an offtake of 765 MT for the current fiscal year ending March 2025, its chairman P M Prasad said on Monday, while ruling out any price rationalisation despite a decline in international coal prices.

The initial production target was 838 MT, which was revised to 806-810 MT in January.

In FY'24, the company achieved production of 773.65 MT, reflecting a 10 per cent year-on-year growth.

Speaking at the Indian Coal Market Conference organised by mjunction, a joint venture between Tata Steel Ltd and SAIL, Prasad attributed the slowdown in offtake to a rake shortage in large mines.

At the same time, he remained optimistic about growth in the coming months.

Both production and offtake are expected to grow by 1.5 per cent this year, based on current estimates, against 10 per cent and 8.5 per cent growth, respectively, last year.

Prasad also mentioned that the availability of rakes had been a concern due to the Kumbh Mela, but after discussions with the Railways, the situation has improved in the last few days.

He also mentioned that currently there is no shortage of coal and stock at power plants is 51 million tonnes.

According to the latest estimates, pithead coal stock is also over 80 million tonnes.

Despite softening international coal prices in the recent months, Prasad ruled out any price cuts by CIL, stating that the company aims to complement, not compete with, commercial mines.

He urged private commercial block owners to seek support from Coal India's CMPDI, as the company is committed to complementing the government's target of reducing coal imports.

Coal India has set a production target of 868 million tonnes for FY'26.

Prasad said a review meeting is being held on Monday with the coal minister and other senior officials on various agenda, including a short and long-term roadmap.

The chairman also highlighted CIL's efforts in sustainable mining practices through advanced technologies, increased underground mining, and environmental initiatives.

The company is focusing on water management, afforestation, and pollution reduction across mining operations.

Underground mining, considered more environmentally friendly, will play a key role in sustainable coal extraction.

"CIL is adopting blast-free techniques and machine learning in mining operations to further reduce pollution. The company aims to raise underground coal production from the current 26-27 million tonnes to 70 million tonnes in the next five to six years, with a long-term target of 100 million tonnes," Prasad said.

He further urged private commercial block owners to seek support from Coal India's CMPDI, as the company is committed to complementing the government's target of reducing coal imports aligning with the Vision 2047 goal of a developed India.