Business & Finance
Coal India aims to achieve 31 mt in FY24 and 42 mt in FY25 through underground mining.
Coal India (CIL) is aiming to increase its coal production from underground (UG) mines to 31 million tonnes (mt) in the current financial year, ending March 2024. The company, which is responsible for 90 per cent of India’s coal production, has further set a target of 42 mt in FY25, starting in April 2024.
In FY23, CIL produced over 700 mt of coal, with around 25 mt coming from underground mines. This accounted for 3.9 per cent of the pan-India production of 893.19 mt in the same period. B Veera Reddy, Coal India Director (Technical), stated that the company has prepared a 100-mt roadmap, with plans to continue increasing production over the next few years. Reddy emphasized the environmental advantages of underground mining, noting that it is more eco-friendly and leads to lesser land and displacement of people.
The push towards UG mining is evident in the Coal Ministry’s goal of increasing UG mining’s contribution to 10 per cent of the total output in the next seven years. This focus aligns with the Ministry’s aim to enhance environmental sustainability, as underground mining has a lower environmental impact compared to open cast mining.
On November 15 last year, Coal Secretary Amrit Lal Meena emphasized the Ministry’s commitment to increase production from underground coal mines to 100 mt by 2030. The Ministry is actively considering policy measures to promote underground mining, with a focus on reducing deforestation, displacement of people, and loss of farmland.
In conclusion, Coal India is strategically targeting an increase in coal production from UG mines, with a strong emphasis on environmental sustainability. With the company’s roadmap and the Ministry’s policy measures, underground mining is set to play a significant role in India’s coal production in the coming years.
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