Coal India is likely to set 660 MnT production target for FY18

Coal India (CIL), the largest coal producer in the country is expecting to increase its yearly coal production target to 660 MnT in FY 18. At present, the company is on the line to achieve its targeted 598 MnT coal production in FY 17. Above steps are taken in order to attain net coal output of 1 BnT as directed by Government of India till 2020.

Coal Ministry is keen to achieve coal production of 1.5 BnT by 2020 despite Central Electricity Authority (CEA) report suggesting new non-renewable sourced plants are not required in the country.

The Government is aiming to achieve set target through 1 BnT coal production by CIL and remaining 500 MnT by private sectors.

CIL, India’s leading coal supplier, provide coal to all major thermal power plants. Government of India wants to improve domestic coal supply to these plants in order to reduce expensive fuel imports so that cheaper electricity can be produced and made available to everyone.

However, CIL has failed to meet its annual production targets for years owing to several reasons including workers strikes and accidents.

During Apr-Dec’16, CIL has produced 378 MnT coal, still lagging behind by 220 MnT to attain its target for FY 17.

CEA Draft Report:
Central Electricity Authority (CEA), governing body for monitoring power generation and usage in the country, estimates no new coal-fired power plants are required during 2017-22, following massive capacity addition plans in the renewable sector including solar, wind and hydel power.

About 70,000MW thermal power plants are already in line for addition to the country’s installed capacity.

Total Power plant Installed capacity of India stands at 308834.28 MW as on Nov’16, out of which Coal-fired power plants’ share is 187802.88 MW.

Source: CEA Report
Till Nov’16