Coal India sets 788 MT production, 765 MT offtake; rules out price cut

Coal India Limited (CIL) is expecting a production of 788 million tonnes (MT) and an offtake of 765 MT for the current fiscal year ending March 2025, its chairman P M Prasad said on Monday.

The initial production target was 838 MT, which was revised to 806-810 MT in January.

In FY'24, the company achieved production of 773.65 MT, reflecting a 10 per cent year-on-year growth.

Speaking at a mjunction organised Coal market conference the chairman attributed the slowdown in offtake to a rake shortage in large mines, but remained optimistic about growth in the coming months.

Both production and offtake are expected to grow by 1.5 per cent this year, based on current estimates against 10 per cent and 8.5 per cent growth, respectively, last year.

Prasad also mentioned that the availability of rakes had been a concern due to the Kumbh Mela, but after discussions with the Railways, rake availability has improved.

On the issue of international coal prices softening, Prasad ruled out any price rationalisation by CIL.He emphasised that Coal India aims to complement, not compete with, commercial mines.

He further urged private commercial block owners to seek support from Coal India's CMPDI, as the company is committed to complementing the government's target of reducing coal imports.

Coal India has set a production target of 868 million tonnes for FY'26.