Robust production, new initiatives to drive growth for Coal India

NRS offtake may remain high, leading to higher blended realisation because power plants with FSA have sufficient supply

Coal India looks set to achieve its 2024-25 (FY25) production targets. If it can achieve its aim of ramping up Fuel Supply Agreement (FSA) and e-auction volumes, along with cost-saving, evacuation and infrastructure-improvement projects, the company could maintain its momentum as a critical infrastructure and core industry performer.

Analysts estimate e-auction volumes of 108 million tonnes (MT) in FY25 and 120 MT for FY26, which is encouraging given the premium of e-auction prices which are consistently over 50 per cent higher than FSA. Global coal prices are down, due to oversupply in China and e-auction prices remain