The increase from 59mt in 2009 to 65mt in 2010 to 81mt in 2012 doesn't seem overly aggressive, but in a market where you're now competing with a global recovery and China importing massive amounts of coal. Any additional pressure will spike prices for any remaining production. Coal India seems to have aspirations for the global energy stage, but for now they remain in the minor leagues. This other article talks about them looking to invest over $2B in overseas assets, but it appears they should focus more on their domestic production.
- The gap between demand and domestic production is expected to increase to 81 million tonnes (mt) in 2011-12 compared with the initial projection of 51mt. Domestic production, estimated at 681mt in 2011-12, may come down to 630mt.
- In 2008-09, the country imported 59mt and in the current financial year, import is projected at 65m
- Excessive delays in statutory clearances for projects, problems of land acquisition and lack of rail transportation facility are cited as the prime reasons for this shortfall.
- Domestic coal is available at 50 per cent lower price than imported coal.