Coal production

Government-owned Coal India (CIL) will expand its coal production capacity by 180 million tonnes over the next five years.

The miner’s current estimated target for the 2012-2013 financial year is pegged at 464 million tonnes, having reached 435.84 million tonnes of coal in 2011-2012.

Coal India chairman S Narsing Rao told reporters in the area that the company is planning an 8% capacity growth in the 12th plan period that runs from 2012 to 2017.

"We had a cumulative production of 180 million tonnes over the last three five-year plan periods," Rao said.

Capacity expansion at CIL is estimated to result in a considerable rise in production to 615 million tonnes by 2016-17.

Rao is urging the government to accelerate the processes for land acquisition and rehabilitation while emphasising the role of rail infrastructure in coal transport.

The company is set to undertake 142 new projects that includes 107 open cast and 35 underground projects with a combined production capacity of 380.22 million tonnes of coal per annum.

Last week, the Indian Prime Minister’s Office directed Coal India to sign fuel supply agreements (FSAs) with power plants that have long and medium term contracts with states and power trading companies by November 2012, reports the Business Standard.

Image: Coal India plans to significantly increase its production capacity. Photo: Komencanto