Coal India is not flustered by the opening up of the sector for commercial mining as it feels it will remain a major player in the mining sector because of its significant resource base.

“Commercial coal mining is not going to adversely impact production and profitability of the company. Uniform quality of coal, cost efficiency in production and reliable delivery schedule will help the company to stay ahead of competition. Introduction of a higher degree of mechanised mining and increasing supplies are the focus areas of the company,” said Coal India chairman Pramod Agrawal.

The IAS officer of the Madhya Pradesh cadre took over as the chairman in February earlier this year.

The government last Thursday announced the auction of 41 coal blocks for commercial mining with an aim to foster competition and bring in capital and technology in the sector.

Coal India officials said on Monday that the miner holds 54 per cent of the country’s coal resource base of 319 billion tonnes under its fold. The allocation of 16 coal blocks earlier by the government has expanded its capacity by 9 billion tonnes to a total of 172 billion tonnes. Of these, subsidiaries Western Coalfields and Bharat Coking Coalfields account for five blocks each, while Eastern Coalfields has three blocks, Central Coalfields has two and Mahanadi Coalfields has one.

Allaying apprehensions that entry of private entrepreneurs in commercial mining may shrink Coal India’s presence, an official said, “ It would not unsettle us. In fact, commercial mining complements our efforts in shoring up indigenous coal output.”