Coal India Ltd on Tuesday said the miner has not raised prices of the dry fuel in the last four years to ensure its supply at competitive prices to consumers compared to the international market.
While addressing shareholders at the company’s 48th AGM, chairman Pramod Agrawal said that the CIL is committed to increasing its production and supplies to the mandated levels to ensure that the country gets power at a "just" price.
Coal India meets 80 per cent of the country's dry fuel requirement.
“At a time when international coal prices are much higher, Coal India continues to supply its coal to Indian consumers at highly competitive prices, with no price increase over the last four years," Agrawal said without elaborating.
The CIL chief had said earlier that the company was in discussion with all "stakeholders" on revising coal prices in the wake of a jump in operational cost.
At the AGM, Agrawal said that coal would continue to fuel India’s electricity generation based on the current usage pattern.
He, however, welcomed the government's impetus for renewables from the environmental perspective and climate commitments made by India in COP26.
"But, till renewable energy starts contributing to the extent that it could take over coal’s role, coal cannot be dethroned from its energy pedestal,” he said.
The entry of renewable energy sources should not be viewed as a “threat” to coal’s standing at least in the immediate future, Agrawal said.
"Out of the country’s electricity generation of 1,490.277 billion units in FY’22, coal-based generation accounted for 69.9 per cent or 1,041.459 billion units. This represents a growth of 9.5 per cent over the preceding year," he said.
Coal India produced 622.63 million tonnes of coal in FY’22 which is the highest since CIL came into being. Production for the year represents an increase of 26.41 million tonnes which is a 4.4 per cent growth over last year.
CIL has devised a transformational plan for operationalising 14 mines through engagement of Mine Developer cum Operators, having proposed a capacity of 165.58 million tonnes per annum which would contribute to sizeable production in the coming years, he said.
“Your company’s capital expenditure of Rs.15,400.96 crore in 2021-22 was the highest ever registering 15.94 per cent growth compared to the capex of Rs 13,283.83 crore of FY’21,” the CIL chief told shareholders.
Agrawal also gave some other updates on the miner's achievements and steps on connectivity, modernisation, automation and Information Technology interventions.