Coal India (CIL) has announced its goal to achieve a coal production of 838 million tonne (MT) in the fiscal year 2024-25, with 661 MT designated for the power sector alone, according to PM Prasad, the chairman and managing director (CMD) of the state-owned company.
Prasad mentioned that the initial target for Coal India was 850 MT, but due to substantial coal stocks at thermal power plants (TPPs), the Ministry has revised the production target to 838 MT for FY25. During a post-earnings conference call for the third quarter of FY24, Prasad stated that Coal India remains well-positioned to exceed the target if there is a significant increase in power demand.
Of the total production target, 661 MT is allocated for the power sector (regulated sector), while the remaining 177 MT will be supplied to the non-regulated sector.
Prasad noted that current coal stocks at TPPs are sufficient, ranging from 85-100 MT, and a review of the coal production target for FY25 is scheduled by the ministry in the first week of April.
India has experienced a 50.8 percent increase in power demand in energy terms from 2013-14 to 2022-23, with peak power demand rising from 136 GW in 2013-14 to 243 GW in September 2023.
Anticipating a peak electricity demand of 256.5 GW in 2024 and a surge to 384 GW in 2031-2032, the government is increasing coal-fired generation capacity. To meet the rising demand, imported coal has been utilised, preventing power cuts and blackouts. Singh, on December 6, 2023, emphasised that the use of imported coal for blending at thermal power plants averted potential shortages.
With domestic coal stocks improving due to increased production, Coal India is optimistic about reducing reliance on imported coal. Prasad expressed hope that imported coal, approximately 200 MT of substitutable coal, would gradually decrease.
As the world's largest coal producer, Coal India achieved a record coal production of 703.2 MT in the last fiscal year. However, for the current fiscal year (2023-24), Prasad admitted the possibility of missing the production target of 780 MT (FY24) by approximately 10 MT. Despite the target of 610 MT for the power sector, Prasad assured that Coal India would exceed this amount.
