Coal India to increase coal prices soon

21 Mar 2023 , 08:14 AM

The increase in coal pricing has a ‘strong case,’ according to Coal India Chairman Pramod Agrawal, and could be implemented ‘very soon’ as talks with stakeholders are in progress. Agrawal added that he had faith in the mining behemoth to meet its production goal of 1 billion tonnes by 2025–2026.

‘Given that there hasn’t been an increase in coal prices in the past five or so years, there is a solid rationale for doing so. The pay negotiations that have been held this year will also have an effect on CIL’s financial situation, particularly for a few subsidiaries where the cost of labour is very high.

‘A lot of issues will arise if prices are not raised. Stakeholder conversations are now being held… It will occur quickly, ‘Agrawal made this statement at the mjunction-organized Indian Coal Markets Conference.

He went on to explain that although CIL is on track to reach the 1 billion tonne production goal by 2025–2026, it would ultimately depend on the needs of the nation and the expansion of the private sector.

‘The willingness to produce is what counts. No nation can advance until its energy resources are safe; therefore, we should be ready to generate if necessary; otherwise, the production can be changed accordingly ‘explained Agrawal.

The CIL president also stated that the business aims to increase underground coal production from its current level of 25 to 30 million tonnes to 100 million tonnes by 2030.

He claimed that good quality coal, ‘which we are facing a lack of,’ is produced via underground mining.

Agrawal emphasized CIL’s initiatives to concentrate on environmentally friendly mining and stated that evacuation procedures are being mechanized to lower carbon footprint and dust pollution.

He stated that from about 100 million tonnes at present, 600-700 million tonnes would be mechanically loaded during the next two to three years.

One of the other strategies used by CIL in its sustainable endeavour is blast less mining, according to Agrawal.

Addressing the event, Coal Secretary Amit Lal Meena said the ministry is developing a plan to increase dry fuel production and stabilize prices.

50 of the 125 mines designated for captive or commercial customers, according to him, have begun operating.

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