Government sets coal output target of 1,080 MT for FY25

The ministry is placing a strong emphasis on ensuring the quality of coal supplied to consumers.
Coal India Limited (CIL), the state-owned mining giant, is expected to contribute a significant portion of the target, at 838 MT, Singareni Collieries Company Limited (SECL) is projected to produce 72 MT.
Coal India Limited (CIL), the state-owned mining giant, is expected to contribute a significant portion of the target, at 838 MT, Singareni Collieries Company Limited (SECL) is projected to produce 72 MT.

NEW DELHI: Coal ministry has set an ambitious target of 1,080 million tonne (MT) of coal production during the financial year (FY) 2024-25. The ministry, in a statement, said this target builds on the strong foundation laid in the previous two years, where production witnessed a compounded annual growth rate (CAGR) of over 13%.

The ministry achieved its target of over 1 billion tonne for FY24, exceeding it by a week. Coal India Limited (CIL), the state-owned mining giant, is expected to contribute a significant portion of the target, at 838 MT, Singareni Collieries Company Limited (SECL) is projected to produce 72 MT. Captive and other mines are anticipated to contribute the remaining 170 MT.

The ministry is placing a strong emphasis on ensuring the quality of coal supplied to consumers. It has set an even more ambitious target of achieving 80% grade conformity in FY25. In 2023, over 76% of samples reportedly met the declared grade, leading to substantial revenue savings for coal companies. To enforce these quality standards, a ranking system for coal mines based on grade conformation parameters has been developed.

Additionally, flying squads from the Coal Controller Organization (CCO) conduct random inspections to collect samples and verify coal quality. The ministry is also pushing for mechanised coal handling infrastructure. As of last year, only 16% of the total dispatch by CIL was handled through mechanised means. This year, the target will increase to 35%.

Finally, the ministry has undertaken a digitisation initiative. This includes equipping all coal transport vehicles with GPS devices, implementing RFID technology for boom barriers, automating weigh bridges, and installing a comprehensive CCTV network connected to a central command center.

Achieves target for FY24

Ministry achieved its target of over 1 billion tonne for FY24, exceeding it by a week. CIL is expected to contribute a major portion of the target at 838 MT, Singareni Collieries Company (SECL) is projected to produce 72 MT

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