Aimed at inducting efficiency in its mining operations, Coal India Limited (CIL) plans to close down 37 mines, which are incurring financial losses on account of low output, by the end of this fiscal.
The plan seems to have originated in the wake of the spate of the shrinking profit margins of the state-run coal miner due to higher production costs, and lower demand for coal in the country.
CIL also has cut its FY18 coal production target to 600 MnT from the original target of 660 MnT in view of the tepid demand.
CIL has 207 underground mines in its total mine count of 413, which is also inclusive of 176 open cast and 30 mixed mines.
CIL, accounts for 80% of the total coal production in the country, had produced 554.13 MnT of coal in the last fiscal.
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