The 16 coal blocks allotted to Coal India in the last one year will enhance annual output by 125 million tonnes, a senior company executive said, pointing out that production at these blocks could start in the next three to six years.

“It is expected to help the company meet its 1 billion tonnes per annum production target, which it intends to achieve by 2023-24,” an executive of Coal India said. “Production at some of the recently allotted blocks can start in the next three years, while for others it may take a little more. However, we hope to start production at all the allotted mines within the next five to six years.”

The government is keen on Coal India hastening up exploration and operationalising all its blocks soon. These include existing blocks with geological reserves of 110 billion tonnes that are yet to be taken up for production, 110 blocks with reserves of about 40 billion tonnes allotted in 2012, and the recently allotted 16 blocks. The coal ministry has advised Coal India’s exploration arm, CMPDIL, to report annually on reserves with every subsidiary company and block, reserves depleted, blocks with areas yet to be explored, blocks under production, and its plan for future projects and their reserve to production ratio.

The Centre has also asked CMPDIL to demarcate large blocks which could be attractive to established exploration companies.