Coal India Faces Potential 15 MT Production Shortfall Against FY25 Target of 838 MT.

Coal India Limited (CIL) is aiming for a strong production recovery in the latter half of FY25, despite challenges faced earlier this year. During the company’s 50th Foundation Day event, Chairman PM Prasad highlighted Coal India's robust first-quarter performance but noted that production was impacted in the second quarter due to heavy rains. "In October, we are up by over 2% compared to last year. I firmly believe that in the next five months, we will achieve around 7% growth," Prasad stated.

In the first quarter, CIL’s output increased by 8% year-on-year to 189.28 million tonnes (mt). However, second-quarter production saw a 3% decline, down to 152.06 mt. After consecutive monthly drops, output rose by 2.3% year-on-year to 62.5 mt in October. Over the seven months of FY25, cumulative production reached 403.8 mt, marking a 2.5% increase compared to the same period last year.

Although the production target for FY25 was initially set at 838 mt, Prasad acknowledged that the company is likely to close the fiscal year with about 823 mt. "Our commitment to the Ministry is approximately 822-823 mt, slightly below target due to land, environmental, and other clearance issues," he said.

In a move to support production growth, Coal India recently obtained environmental clearance to boost output at Gevra mines, a major site under South Eastern Coalfields. This is expected to significantly contribute to the company's future production capacity.

Prasad also expressed optimism regarding Eastern Coalfields Limited (ECL), a CIL subsidiary. He anticipates that ECL, which currently has an estimated ₹2,200 crore in accumulated losses, will clear two-thirds of its losses by the end of FY25 and be positioned to pay dividends by FY26.

HBL