Coal India production will hit 1.25 billion tonnes in four years

India’s largest mining company, Coal India Ltd. will hit production volumes of 1.25 billion tonnes in the next four years, India’s Coal Secretary Amrit Lal Meena told CNBC-TV18 in an exclusive interaction.

As per a draft note of the Niti Aayog dated March 21, 2022, plans were being made to increase Coal India’s production to one billion tonnes per annum by financial year 2025.

Coal Secretary Meena said he is hopeful that Coal India will achieve its current year production target as well as meet its financial year 2025 production target of 850 MT. Coal India had achieved its financial year 2023 production target of 700 MT on March 30, one day before the end of the financial year.

In another piece of positive news, the Coal Secretary also told CNBC-TV18 that Coal imports as a percentage of total consumption has come down from 26% in 2019 to 21% in 2023.

For Coal India, e-auctions contribute 15% to 18% of the company’s overall volumes. However, e-auction premiums have declined to 70% from 150% earlier due to adequate supply of Coal. Meena said that Coal India’s e-auction prices will be determined by the market.

The Coal Secretary also refused to comment on whether any further Offer for Sale (OFS) for Coal India is in the works.

Coal India’s shares rose 67% in 2023, making it the best calendar year for the stock since it listed in 2010. The stock had gained 54% in 2022 as well.