You emphasised that increased coal production and improved quality coal supplies are the company’s core functional areas in meeting the energy demand of the country. What is Coal India’s coal production and supply target for this fiscal?

Yes, these twin commitments remain firm in our corporate ethos. After evaluating the anticipated demand from both the power and non-power sectors, the production target is pegged at 815 million tonnes (mt), while the supply target is set at 850 mt. Supply or offtake lists high among our key priorities followed by the production. Coal supplies are placed at the top because we began FY27 with around 130 mt of coal stock at our pitheads, which was 17 per cent of our entire output of 768 mt in FY26. Liquidation of this inventory is our major operational focus.

Our effort is to progressively moderate the inventory levels towards more optimal levels of around 10 per cent of the total production, or around 70 mt. Therefore, the emphasis is now on more efficient synchronisation between production and evacuation. We are consciously making efforts to place fresher coal into the market and move towards a more demand-aligned produce-and-sell approach, rather than prolonged stocking before sale.

With this change in approach, would the company need to realign its mining activity?

This approach does not entail any change in our mining operations. We will, to the extend possible, sell the fresh coal in the market, so our approach of production will be in consonance with the offtake. As per demand, we will produce, so that some threshold levels of stock will always be there. Because we have to be ready to make good of the pertinent demand. Sometimes logistic and mining disruptions occur in the supply chain. What we are doing is we are liquidating our stock in FY27, so that we will maintain stock to a certain threshold level to keep some buffer.

What role will CIL play to boost coal gasification to channel domestic coal into cleaner industrial uses?

For the company, the gasification push represents a structural shift from being primarily a coal producer and supplier to emerging as a coal-to-chemicals and cleaner fuel integrated energy producer. The aim is to cut import dependence on industrial feedstock and natural gas. In this, our company is synergising its coal gasification efforts with three major CPSUs — BHEL, GAIL and BPCL. The centrepiece of this push is a coal gasification-based ammonium nitrate project of 6.6 lakh tonnes per annum capacity at Lakhanpur under our Odisha based subsidiary Mahanadi Coalfields. This project, at around ₹25,000 crore is being developed through Bharat Coal Gasification and Chemicals Ltd, which is a joint venture between Coal India and BHEL. This is CIL’s first commercial scale downstream coal gasification venture.

Alongside, CIL is pursuing two coal-to-synthetic natural gas (SNG) projects, each with 633 million normal cubic metres per annum capacity, aimed at supplying cleaner fuel to fertiliser units and industrial consumers. One is being planned in Bardhaman, West Bengal, through JV with GAIL under Coal Gas India Ltd, at an estimated investment of ₹13,000 crore. The second SNG facility is being planned at Chandrapur in Maharashtra with BPCL at a capital outlay of around ₹12,200 crore. When commissioned, the three mega facilities could anchor India’s coal-to-chemicals ecosystem and reshape the country’s vast coal reserves while supporting energy security and industrial growth.

E-auction price of coal increased 51 per cent over notified prices in April. However, the quantity of coal allocated through the e-auction decreased 11.64 per cent on a month-on-month basis. What is the outlook going forward?

Last financial year was an aberration for coal demand. Moderated summer temperatures and heavy rainfall were the principal causes for lukewarm demand. This led to our e-auction premiums settling down at 38 percent. With the onset of summer demand, the power sector is consuming increased volumes of coal. So, going forward in the current financial year, we expect the e-auction premiums (add-ons over notified price) to be between 40 and 45 per cent if the demand continues at the similar trend. Imported coal prices, which are currently high, hold a sway over our e-auction premiums. This may contribute to increased premiums this year if the imported prices continue to hold at higher levels. E-auction volumes and premiums are driven by the market demand dynamics, and we shall offer adequate quantities through the auction window.

What are the company’s plans to meet the peak summer season demands?

With adequate coal availability, the company is geared up to meet the summer demand. Coal stock at the domestic coal-based power plants is around 48 mt. Coal inventories at our pitheads are at around 113 mt. Further, around 50 mt of in-situ coal within mines is ready for quick extraction and supply if the demand necessitates. We are also strengthening our coal evacuation infra through first mile connectivity (FMC) projects and rail corridor.

In order to improve mechanised coal transportation, how far has CIL progressed in terms of first mile connectivity?

We are building FMC projects that are closed-loop belt conveyor systems with coal handling plants and silos, where rakes are brought straight to the mine mouth for direct loading. Prior to 2020, Coal India had a FMC capacity of around 151 mt. At present, we have 46 FMC projects with a total capacity of 432 mt. In the current fiscal, we are making efforts to add another 13 projects of capacity of 133 mt, which would elevate the total capacity to around 565 mt. By FY29, we plan to have a total of 94 FMC projects with a cumulative capacity of 994 mt. The investment required for these projects is substantial. Roughly, each project costs around ₹500 crore. Over the next three to four years, we will invest around ₹25,000 crore in FMC infrastructure.

The Centre has directed the Coal Ministry to list all Coal India subsidiaries by 2030. In that scenario, what will be CIL’s roles?

This fiscal listing is planned for South Eastern Coalfields Ltd (SECL) and Mahanadi Coalfields Limited (MCL). As of now, there are no formal directives for the other subsidiaries. Coal India's role as a holding company will always be there, that is, taking centralised policy decisions on executive and non-executive recruitments, business development, entire marketing gamut and coordinate at various ministerial levels. There has to be a uniform policy across all the coal subsidiaries. From that point of view, Coal India's importance will always be there.