Coal India Limited (CIL) Chairman and Managing Director P M Prasad on Wednesday stated that there is sufficient coal stock available in the country, and the company is prepared to address any sudden increase in demand.
In this endeavour, the company is actively pursuing several initiatives to boost its production capacity including the development of new mines and the expansion of existing ones, Prasad told shareholders at the 49th AGM.
Regarding the listing of subsidiaries, Prasad informed shareholders that progress has been made in this connection, and the first listing will be that of Bharat Coking Coal Ltd (BCCL), followed by Coal Mine Planning and Design Institute of India Ltd (CMPDI).
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No further details on the timeline were shared.
“CIL is committed to meeting the country's growing demand for coal and is ready to address any sudden surge in demand," Prasad said.
In a meeting with senior officials on Tuesday, the coal ministry reviewed dry fuel production and offtake due to the surge in power demand across the country.
Coal Minister Prahlad Joshi had earlier mentioned that the country possesses ample coal stocks, with nearly 80 million tonnes available with thermal power plants and Coal India.
Regarding the progress of fertiliser plants, the chief of the world's largest miner stated that the Rs 1,700 crore fertiliser unit in Talcher, Odisha, is expected to be commissioned in the October-December period of 2024-25, and approximately 25 per cent of the work has been completed.
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In relation to its JV company Hindustan Urvarak & Rasayan Ltd, Prasad anticipates that it will break even and possibly turn profitable in the next 1-1.5 years.
Discussing the performance of FY23, Prasad revealed that CIL achieved a record coal production of 703.2 million tonnes (MT) in the fiscal year 2022-23. Additionally, the company attained a record coal offtake of 694.7 million tonnes during the same period.
The CIL CMD noted that the growth momentum remained robust in the first quarter of the current fiscal year.
"CIL achieved a 10 per cent growth in coal production, 30 per cent growth in overburden removal, and 5 per cent growth in offtake during the quarter compared to the corresponding quarter of FY23. We supplied the highest-ever quantity of 186.95 million tonnes for the Q1 period of any year. The total revenue from operations for the first quarter of FY'24 is Rs 35,983 crore," Prasad said.
Discussing CIL's efforts to reduce its carbon footprint, Prasad stated that the company is committed to a clean energy future. He mentioned that the company is investing in renewable energy projects and adopting cleaner technologies in its mining operations.
Over the next three years, the Maharatna company plans to generate 3,000 MW of solar power, creating a new revenue stream.
According to Prasad, coal demand is projected to continue growing for the next 20-25 years, despite the increasing adoption of renewable energy, which might slow down coal demand in the future.
Coal India closed at Rs 230.80 on the National Stock Exchange.
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