State-run Coal India is expecting a production of 788 million tonnes for the current financial year against the initial production target of 838 million tonnes (mt).
Although international coal prices have softened, Coal India, the world’s largest coal miner, has ruled out any price rationalisation.
Speaking at the Indian Coal Markets Conference, organised by mjunction, Coal India Chairman PM Prasad said the company was expecting a production of 788 mt and an offtake of 765 mt for the current fiscal year.
The initial coal production target for FY25 stood at 838 mt, but it was revised to 806-810 mt in January.
Notably, Coal India’s offtake in April-February this fiscal grew marginally by 1.3 per cent year-on-year (y-o-y) to 693.4 mt from 684.7 mt in the same period last fiscal. Total production during this period was 695.3 mt, 1.5 per cent higher compared to 685.1 mt in the year-ago period.
Positive outlook
The Coal India chairman attributed the slowdown in offtake to rake shortage in large mines. However, he remained optimistic about growth in offtake in the coming months.
Prasad mentioned that the availability of rakes had been a concern due to the Mahakumbh Mela in Uttar Pradesh’s Prayagraj, but rake availability has improved after discussions with the Railways.
He ruled out any price rationalisation by Coal India amid softening of international coal prices. He pointed out that the company was aiming to complement, not compete with commercial mines.
Prasad urged private commercial block owners to seek support from the Central Mine Planning & Design Institute (CMPDI) as it was committed to complementing the government’s target of reducing coal imports.
Coal auction prices remained flat sequentially during January-March this year, despite an improvement in buyer participation. Also, currently there is no shortage of coal in the domestic market, with Coal India holding pithead stock of over 80 mt and power plants having stocks of 51 mt.
“Coal auction prices remained muted and flat in the first two months (Jan-Feb 2025) of the fourth quarter of FY25 compared to the third quarter. Several factors are at play, including demand,” mjunction MD and CEO Vinaya Varma said on the sidelines of the Indian Coal Markets Conference.
