Coal India Chairman Pramod Agrawal on Monday said there is a "strong case" for increasing coal prices, and the hike could be effected "very soon" as discussions are underway with stakeholders. Agrawal also said he is confident that the mining behemoth will achieve the production target of 1 billion tonnes by 2025-26.
"There is a strong case for increasing coal prices, as that has not happened in the last five-odd years. This year, the wage negotiation has taken place as well, which will have an impact on CIL's financial condition, especially for a few subsidiaries where the manpower cost is very high.
"There will be a lot of problems if prices are not hiked. Discussions are underway with stakeholders... It will happen very soon," Agrawal said at the Indian Coal Markets Conference in Kolkata organised by mjunction.
Elaborating on the 1 billion tonne production target, he said though CIL is on course to achieve the same by 2025-26, it will depend on factors like the need of the country and the growth of the private sector.
"What is important is the readiness to produce. No country can develop unless its energy resources are secured - so we should be in readiness to produce if requirement is there, if not, the output can be adjusted accordingly," Agrawal said.
The CIL chief added that the company is aiming to raise underground coal production to 100 million tonnes by 2030 from around 25-30 million tonnes at present.
He said underground mining results in good quality coal, "which we are having a shortage of".
Underlining CIL's initiatives to focus on green mining, Agrawal said evacuation processes are being mechanised to reduce carbon footprint and dust pollution.
In the next two-three years, 600-700 million tonnes would be mechanically loaded from around 100 million tonnes at present, he said.
"Another key aspect is digitisation which leads to efficiencies in production. We have identified seven big mines for the digitisation process, which can increase equipment efficiency by 50 per cent," the top CIL official said.
He said the company has also laid thrust on solar initiatives to lower energy costs and emission, and floated tenders for 400 MW solar power plants.
Blastless mining and plantation exercises are some of the other measures adopted by CIL in its sustainable endeavour, Agrawal said.
Speaking on the occasion, Coal Secretary Amit Lal Meena said the ministry is working on a strategy to enhance production of the dry fuel and bring about price stabilisation.
He said out of the 125 mines allocated to captive/commercial users, 50 of those have started production.
"Another 10 mines are scheduled to commence operation in the 2023-24 fiscal. This year, the production from captive/commercial mines is likely to be 112 million tonnes, and 161 million tonnes in 2023-24," Meena said.
Asked about the decades-old underground coal fire in Jharia in Jharkhand and West Bengal's Raniganj, he said the relocation exercise is underway in both places, along with efforts to check the fire.
"The target is by December 25, the fire incidence in Jharia will have to be checked and people residing in 81 most prone sites shifted to other safer areas," Meena said.
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