Coal production in India is expected to go up by 50 million tonne this fiscal as the Government of India has mandated the state-run producer in the country—Coal India Limited— to raise its production to 550 million in FY16.
During FY15, CIL produced 494 million tonne of coal, and that was up by 32 million than that in the preceding fiscal, but fallen behind the production target by 3%.
The enhanced production, as targeted, will, however, not result in lowering imports into the country as the company supplies most of its production to power companies, alongwith some other segments, directly. And, coal prices will also remain immune to the higher production target due to the dependence of price movements on international market conditions.
Whether the targeted production will be achieved is a matter of the company restricting itself from falling behind the target. The company has already fallen behind its production target for the first six months of the current fiscal. During the April-September 2015 period, CIL produced 229.54 million tonne against the target of 235.49 million tonne. Also, the September 2015 target was missed by 4.1 percent, recording an output of 37.17 million tonne.
Aiming at substantially increasing the domestic production, the government has set an ambitious production target for the company to raise its output to one billion tonne by 2020.
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