Coal India not as optimistic as it seems
Even as it chases a production target of a billion tons a year by 2020, India’s state-run coal monopoly is privately raising doubts about its prospects in the next decade.
In an unpublished report viewed by the Nikkei Asian Review, Coal India, the world’s largest coal producer, says the industry faces a major domestic challenge as renewable energy makes inroads into its dominance in electricity generation.
Representatives of Coal India’s workers, however, have rejected the company’s pessimistic findings, saying they are a ploy to counter demands for higher wages and better working conditions.
Coal India reported record production of 538 million tons for the year ended March 2016, up from 494 million tons the previous year. However, a subsequent fall in demand has forced Coal India to reduce production growth, and it is likely to fall short of the current fiscal year’s target of 724 million tons. The company produced only 230 million tons in the first half of the fiscal year.