Kolkata: Pramod Agrawal, Chairman of Coal India, stated on Thursday that the company should continue to operate as a "government entity" in order to maintain "price stability" of coal in the country. He also suggested an alternative pricing methodology for coal in the future. Agrawal emphasized that the purpose of all enterprises should not be solely focused on unlocking value.

As a government-owned entity, Coal India bears the responsibility of ensuring equitable distribution of the benefits from coal production to the public, according to Agrawal. He further highlighted that the miner's identity is closely linked to the country's energy sector, and the current structure with Coal India Limited (CIL) as the apex holding company is "strong and stable."

Agrawal addressed concerns about potential price escalation in international coal prices by private companies. He mentioned that as a government agency, Coal India is unlikely to follow suit in such scenarios. This statement came in response to a question regarding whether Coal India should remain a government entity in order to unlock its value.

The government had been gradually reducing its stake in Coal India to raise funds. Recently, a three percent stake was sold, generating Rs 4,185 crore and reducing the government's holding to approximately 63.1 percent. Coal prices of the Kolkata-based PSU are significantly lower compared to imported fuel.

Agrawal suggested the possibility of revisiting coal prices in shorter durations based on specific parameters such as inflationary costs. This approach, linked to indices like the wholesale price index, would be less disruptive compared to infrequent price revisions. The priority is to avoid burdening the country with increased prices while ensuring the company's financial performance remains robust.

During Agrawal's three-year tenure starting from FY'20, Coal India witnessed a significant increase in production, off-take, and supplies to the power sector. Additionally, profits and net sales reached their highest levels ever in FY'2023. Agrawal mentioned his focus on coal quality improvement, digitalization, and expediting the ERP process, but acknowledged the need for further enhancement in grade conformity.

Looking ahead, Agrawal highlighted the challenges of sustaining production growth, meeting coal demand, maintaining quality, and exploring alternative uses and diversification avenues to retain Coal India's energy leadership. He expressed confidence in incoming Chairman P.M. Prasad's ability to tackle these challenges.

Regarding the energy scenario in the country, Agrawal stated that coal will continue to dominate India's energy mix for at least the next two decades, even as renewable energy capacity witnesses substantial growth. He mentioned that the use of coal is expected to peak by the early to mid-2030s.

Agrawal reflected on the challenging times faced during his tenure, including the COVID-19 pandemic, shortage of explosives due to the Beirut explosion, and unpredictable coal demand. However, he expressed satisfaction in successfully navigating these challenges, including managing coal imports for the first time.

In conclusion, Agrawal stated his belief that commercial mining does not pose a threat to Coal India. He expressed confidence in the company's ability to meet competition with improving efficiency. Coal India contributes to around 80 percent of the country's coal production.