(FE)
State-owned Coal India has set its asset monetisation target for the current financial year at Rs 6,264 crore, its chairman and managing director PM Prasad told FE. In FY25, the company’s actual monetisation stood at nearly Rs 8,462 crore.
“Award of six mine developer and operator projects accounted for monetisation of Rs 7,128 crore in FY25, while seven abandoned and discontinued mines were monetised at a value of Rs 830 crore and one washery on build-own-operate fetched Rs 504 crore,” Prasad said.
The ministry of coal achieved Rs 46,873.46 crore in asset monetisation in FY25, according to the ministry’s data.
Coal India is likely to open a total of six mines with a total annual capacity of around 29 million tonne in the current financial year. These include two mine developer and operator (MDO) projects. “Additionally, six-to-seven discontinued mines offered on a revenue sharing basis are likely to start production in 2025-26,” said Prasad.
For FY26, the company has set a capital expenditure target of Rs 16,000 crore. During the past few years, CIL has heavily invested in large equipment, land, evacuation infra, etc. Of this year’s total capex, coal transportation and evacuation infrastructure — setting up rail sidings and corridors, coal handling plants/silos, and roads — account for over a third at nearly Rs 5,622 crore.
The company is aiming at enhancing its production of coal amid the government’s target of increasing domestic availability of coal while reducing the country’s dependence on imports. The coal ministry is targeting creation of additional coal production capacity to boost coal output as well as replace depleting mines.
Accordingly, the coal ministry has set a target of opening 100 new mines intending to create an additional capacity of 500 million tonne per annum by 2029-30. “To achieve this target, it is proposed for operationalisation of more than 20 new mines with an aggregate of over 80 million tonne per annum during FY26, including coal PSUs & commercial/captive mines,” the coal ministry said in its action plan for FY26. In FY25, the government operationalised 13 mines with a capacity of 83 MT.
In FY25, CIL produced 781.05 million tonne of coal in FY25, up 1% from 773.65 million tonne in FY24. The company has been given an 875 million tonne (MT) coal output target for FY26.
India’s cumulative coal production reached 1.05 billion tonne in FY25, compared to 997.83 million tonne in FY24, marking a 4.99% growth, as per data from the coal ministry.
For the current financial year, the government is targeting an overall coal production of 1.15 billion tonne, of which Coal India is expected to produce 875 million tonne.
