Coal India Could Meet FY15' Production Target

Boosted by environmental relaxation in mining, Coal India today said it was looking to meet the production target for the current fiscal by ramping up its production despite falling short till August.

"We have received environmental nod for additional mining activities in some of our existing mines. The incremental production from these mines should hold us good for meeting the production target this year (2014-15)," Coal India acting chairman A K Dubey said here after the Annual General Meeting.

"We expect an incremental production of at least 10 million tonnes to a maximum of 20 million tonnes (MT)from existing mines," he added.

The expansion limit for coal mines has been increased without the mandatory public hearing. Increasing production up to 6 mt for mining in case of mines having generating capacity of more than 20 MT a year will not require any consent from locals.

Dubey said the company was also focusing on strengthening its infrastructure for production and evacuation.

The world's largest coal miner's production during April-August was around 176 MT, which was short of close to 8 mt from its target of 184 million tonnes, CIL sources said.

Dispatches for five month period was at 195 mt - a shortfall of 14 mt from the target of 209 mt.

Coal India produced 34.54 mt of coal in August, missing its target for the fourth consecutive month, even as acute fuel shortages continue to hit power generation.

The full year production target for 2014-15 is set at 507 mt, the sources said.