CCO downgrades 177 mines of Coal India

Coal Controller Organisation (CCO) has reassessed and downgraded Coal India's 177 coal mines across the country.

Total 2636 samples have been collected and examined from the mines of Coal India's seven subsidiaries, and it finally resulted into downgrading of 177 mines. Coal India's revenue from these coal mines is expected to decline, whereas, the cost of mining is expected to remain as it is.

There could be significant loss in the short run to Coal India, but it is expected to be beneficial for its consumers, resulting in declined coal prices affected by downgrading. This will be more favourable for the power generating companies like NTPC, which will now be able to get coal at cheaper rate supported by this downgrading.

Coal India is the world's largest coal miner and is expected to raise its production to 660 million tonnes in FY17-18 and 1 billion tonnes by FY2020. It is planning to boost domestic output to cut its imports. During 9MFY17, Coal India has produced 378 million tonnes. However, it has failed to meet its targets because of strikes, protests and accidents. Further, power generation companies account for over 70 per cent of the country's use of coal.

Coal India Ltd., is a Public Sector Undertaking under Government of India that produces non-coking coal and coking coal of various grades for diverse applications. It operates 471 mines in 21 coalfields across India.