Coal India is expecting to ramp up production in the remaining five months of 2024-25 to reach closer to its annual target after a slowdown in the second quarter.

The public sector miner hopes to reach around 823 million tonnes (mt) of production by March, 15mt short of its target of 838mt.

"This year in the first quarter we had done exceedingly well. In the second quarter, due to heavy rain, our production was down. In October again we are ahead slightly by above 2 per cent compared with last year. I firmly believe in the next five months we will grow in the range of 7 per cent,” Coal India chairman P.M. Prasad said on Sunday at the foundation day of the company.

Coal India’s production in the second quarter was 152.06mt, down 3.4 per cent. In October, production was 62.5mt, up 2.3 per cent from 61.1mt in October 2023.

Factors such as delays in land acquisition, environment and other clearances coupled with heavy rain are expected to result in the PSU clocking a shortfall for the year.

Prasad, however, said Coal India has recently received environmental clearance to step up production at Gevra mines (under South Eastern Coalfields), one of the largest coal mines under the company’s fold.

Rising competition

In 2023-24, India’s coal production was at 997.23mt, of which Coal India produced 773.64mt, while SCCL and captive miners together produced the remaining 223.59mt.

In the first two quarters of 2024-25, while Coal India has produced 345.34mt, up 2.54 per cent year-on-year, captive miners have produced 83.21mt, up 30.06 per cent from 63.98mt in the year-ago period.

“I want to remind our team in the field that we have to dedicate ourselves to improving coal quality and environmental best practices. Whatever quality we bill, we should deliver. Now commercial mines have come,” Prasad said.

Union coal minister G. Kishan Reddy, in the city for the foundation day, said coal is expected to remain a mainstay in the energy mix of the country.

“Coal India has to step out of its comfort zone and compete in the open market and I am hopeful that Coal India will be ready not only to compete in India but also globally,” the minister said.

Prasad said that in the next 20-25 years Coal India has to focus on diversification in areas such as solar power generation and surface coal gasification.

“By 2029-30, we are hoping that Coal India’s first coal gasification plant along with BHEL JV will become operational, he said.

Prasad also expressed confidence that ECL (Eastern Coalfields), one of the subsidiaries of Coal India, would be able to wipe off its accumulated losses and pay dividend by FY26.

ECL’s accumulated loss is estimated at around ₹2,200 crore.

“I am hopeful of wiping off around 2/3rd of the accumulated losses of ECL this year and wipe off the entire accumulated losses next year and be in a position to become a dividend-paying company,” Prasad said.