Coal India Limited (CIL) is targeting a production of 788 million tonnes (MT) and an offtake of 765 MT for the fiscal year ending March 2025, its Chairman P.M. Prasad confirmed on Monday. Despite a decline in international coal prices, CIL is not considering any price rationalisation.
Prasad explained that the initial production target of 838 MT was revised down to 806-810 MT in January due to logistical constraints, particularly a rake shortage in large mines. The company achieved 773.65 MT in FY’24, marking a 10% year-on-year growth in production.
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 the limited availability of rakes, but expressed optimism for growth in the coming months. Both production and offtake are expected to grow by 1.5% this year, compared to 10% and 8.5% growth in FY’24, respectively.
Stock Availability and Concerns on Rake Shortages
While addressing concerns over coal shortages, Prasad reassured stakeholders that there is no shortage of coal in the country. He noted that power plants currently have 51 million tonnes of coal stock, and pithead coal stock exceeds 80 million tonnes. The issue of rake shortages, which had been exacerbated by the Kumbh Mela, has been resolved following discussions with the Railways, improving the situation in recent days.
No Price Cut Despite Global Coal Price Softening
Despite a recent decline in international coal prices, CIL has ruled out any price cuts. Prasad emphasized that CIL is not in competition with commercial mines but aims to complement their efforts. The company has maintained its focus on delivering reliable coal supplies to meet India’s growing energy demands.
Focus on Sustainable Mining Practices
CIL is also prioritizing sustainable mining practices, including water management, afforestation, and pollution reduction across its operations. One key initiative is the increased use of underground mining, which is considered more environmentally friendly. CIL plans to raise its 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 goal of reaching 100 million tonnes.
Prasad further mentioned that the company is adopting blast-free techniques and machine learning technologies in its mining operations to minimize pollution. These innovations are part of the company’s broader commitment to sustainable and environmentally responsible coal extraction.
Support for Private Sector and Vision 2047
In his address, Prasad also urged private commercial block owners to collaborate with Coal India’s Central Mine Planning and Design Institute (CMPDI) for support in meeting the government’s target of reducing coal imports. He highlighted CIL’s role in aligning with the Vision 2047 goal of making India a developed nation by focusing on increasing domestic coal production.
Conclusion
While CIL is facing some logistical hurdles in meeting its original targets for FY’25, the company remains committed to boosting coal production and offtake in the coming months. With an emphasis on sustainable mining practices and collaboration with the private sector, Coal India aims to play a pivotal role in India’s energy future while reducing dependence on coal imports.
