Coal India’s UG Resurgence: A 14-Year First

After 14 years of declining underground coal production, Coal India Limited has reported a reversal. The company achieved an output of 26.021 million tonnes for FY 2024, reflecting a year-on-year growth of 2.10%. Modern technology and revisiting abandoned mines played crucial roles in this resurgence.

For the first time in 14 years, Coal India Limited (CIL) has reversed its declining trend in underground (UG) coal production, as reported by Chairman P M Prasad in the company's latest annual report.

In FY 2024, CIL achieved an output of 26.021 million tonnes, surpassing the previous fiscal year’s production of 25.487 million tonnes. This marks a year-on-year growth of 2.10%. Company officials attributed this success to the implementation of modern technology and equipment.

As part of its strategy to enhance UG mechanization, CIL deployed six continuous miners and commissioned three highwall miners in the Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), and South Eastern Coalfields Limited (SECL) during FY 2024. Furthermore, in a significant move to exploit latent coal reserves, several abandoned UG mines were revisited and 11 mines were awarded on a revenue-sharing model to private-sector bidders. These mines have a cumulative peak rated capacity of 17.86 million tonnes per year and total extractable reserves estimated at 267.54 million tonnes.

So far, CIL has awarded 24 out of 34 identified mines and is working to identify additional mines to attract broader participation with relaxed bid norms, Prasad added.