Coal India has estimated an incremental production of 80 million tonnes (mt) in 2023-24, taking the total production target of the miner to 780 million tonnes. This includes supply to both the power and non-power sectors. Coal India hopes to end 2022-23 with a total production of 700mt. “

Next year our target is 780mt, which is a very stiff target. A growth of 80mt is not easy but Coal India is committed to give that growth. By 2025-26 we are hopeful of reaching 1 billion tonnes. But that will depend on what is the need of the nation at that point of time. Because by that time competition is also likely to come from the private sector,” CIL chairman Pramod Agrawal said on Monday at an event organised by a mjunction.

The chairman further said that Coal India has charted a plan to step up coal production from underground mines from around 30mt at present to 100mt by 2030.

However, Agrawal also voiced the need for an increase in the coal prices keeping in mind the increasing inflation and the rising costs for the company following wage negotiations.

A revision in prices would be crucial for subsidiaries such as Eastern Coalfields, Bharat Coking Coalfields and Western Coalfields where manpower cost is higher.

“I think there is a very strong case for price increase. Because for five years there has not been an increase,” he said, adding that discussions are ongoing on a price hike.

But all stakeholders, including government and consumers, have to be brought on onboard before an increase is made.

Expedite exploration

Union coal secretary Amrit Lal Meena said the government is anticipating an increase in the share of coalsupply from commercial and captive sources.

“This year we are likely to achieve 112mt. In 2023-24, our target is 161mt.”

A total of around 125 mines have been auctioned and allocated so far of which 50 have started production. The government is likely to come out with the seventh tranche of auction of commercial coal mines in mid of April 2023.