Coal India Limited (CIL) has confirmed the discontinuation of operations in 18 underground mines. This move follows previous suspensions in 12 mines in 2020-21, two in 2021-22, and four in 2022-23, all identified as financially unviable contributors to the company's overall production.

These shuttered mines, constituting 34.77% of the total workforce, have only been responsible for a mere 3.87% of the total coal production. Part of a larger initiative, this action is aligned with CIL's objective to reduce manpower by approximately 5% over the next 5-10 years from the FY23 workforce level of 2,39,210 employees.

CIL's focus remains on digitalization and the adoption of Mine Developer cum Operators (MDOs) to augment capacity utilization and bolster production volumes. The company has issued Letters of Assurance for 12 projects, aiming for a combined capacity of 131 million tonnes. Mining activities have already commenced in three projects, while agreements are in place for nine, with the remainder undergoing re-tendering and bid evaluations.

The company's efficiency has shown a positive trend, reflected in an enhanced output per man-shift, rising to 12.80 tonnes in FY 22-23 from 9.53 tonnes in the preceding fiscal year. Particularly noteworthy is the productivity surge in open-cast mines, witnessing a consistent climb in production over the last seven years, culminating in 678 million tonnes in FY 23, compared to 505 million tonnes in FY 16.

CIL's recent half-yearly report showcased a production of 26.38 million tonnes from underground mines and 320 million tonnes from open-cast mines. The company remains steadfast in its pursuit of increased production while concurrently streamlining manpower and operational expenses, part of a comprehensive long-term strategy aimed at maintaining competitiveness in the evolving energy sector.