Representational file photo of a coal loading point at an underground coal mine. , photo credit: GN Rao
Coal India Chairman Pramod Agarwal said on 20 March that there is a “strong case” for increasing coal prices, and the hike could be effective “very soon” as discussions with stakeholders are underway.
Mr Aggarwal also said he was confident that the mining giant would achieve its production target of 1 billion tonnes by 2025-26.
“There is a strong case for increasing coal prices, as has not happened in the last five-odd years. Wage settlement has also taken place this year, which will have an impact on the financial position of CIL, especially for some subsidiaries where manpower cost is very high.
Speaking at the Indian Coal Markets Conference organized by mjunction, Mr Agarwal said, “There will be a lot of problems if the prices are not hiked. Discussions are going on with the stakeholders. It will happen very soon.”
Elaborating on the 1 billion tonne production target, he said though CIL is on track to achieve it by 2025-26, it will depend on factors like the country’s need and private sector growth.
“What is important is readiness to produce. No country can develop unless its energy resources are secure – so we must be prepared to produce if needed, if not, output accordingly can be accommodated,” Mr Agarwal said.
The CIL chief said the company aims to increase underground coal production to 100 million tonnes by 2030 from around 25-30 million tonnes at present.