Eastern Coalfields Limited (ECL) is targeting 81 million tonnes (MT) of coal production by 2034–35. The company is building its growth plan around higher productivity, mine-specific strategies, technology adoption and tighter cost control.
ECL CMD Shri Satish Jha outlined the roadmap and the company’s recent performance at a press meet at its headquarters in Sanctoria, Asansol.
ECL Coal Production Reaches Record High
ECL recorded its highest-ever coal production of 52.085 MT in FY 2025–26. The record output came despite financial pressure. The company reported a loss of around ₹1,257 crore during the year.
The company has since started a financial and operational recovery.
In the April–June quarter of FY 2026–27, ECL reported a profit before tax (PBT). The improvement reflects the impact of corrective measures and a sharper focus on operational efficiency.
Mine-Level Strategy to Improve ECL Coal Production
ECL is adopting different strategies for individual mines based on their operational and financial performance.
At present, 57 mines remain loss-making, while 20 mines are profitable.
The company is taking several measures to improve mine productivity and reduce losses. These include:
- Mass production technology in 19 mines
- Amalgamation of seven mines
- HOE contracts in four mines
- Strategic closure of 11 mines
- Cost-control measures across other mines
The approach is aimed at improving mine economics while strengthening overall production efficiency.
Rehabilitation and Resettlement Remain Key Priorities
ECL is also focusing on the rehabilitation of communities affected by mining activities.
Under the Raniganj Rehabilitation and Resettlement Plan 2009, the company has identified 138 sites. The plan has an allocation of around ₹2,661 crore.
Legal title holders are eligible for compensation and housing benefits as per applicable rules. Other affected residents are covered under the prescribed rehabilitation framework.
Power Theft Adds to Operating Costs
Electricity pilferage remains a major challenge for ECL. The company spends around ₹550 crore annually on electricity.
Of this, about ₹250 crore is estimated to be lost due to theft and pilferage. The company is working to reduce these losses and improve cost efficiency.
Illegal mining is another operational concern. According to the CMD, rat-hole mining has been almost eliminated with support from the District Administration.
ECL has also strengthened its security infrastructure. Measures include increased CISF deployment, drone surveillance and Integrated Command and Control Centre (ICCC) systems.
Technology to Support Sustainable Mining
ECL is examining alternative technologies for filling mine voids. The objective is to reduce dependence on conventional sand stowing methods.
The company also plans to strengthen scientific mine closure practices. It remains focused on responsible extraction of non-coking coal and reducing the environmental impact of mining operations.
ECL Targets Long-Term Production Growth
ECL’s roadmap to 81 MT of coal production by 2034–35 will depend on sustained productivity improvements.
The company plans to combine operational efficiency, financial discipline, technology adoption and employee participation to support long-term growth.
At the same time, rehabilitation and environmental management will remain important parts of its mining strategy.
Source: PSU Connect
