India´s second-largest coal producer Singareni Collieries will open the country´s biggest underground mine this month with a capacity of 2.8 million tonne per year, which should help the firm edge past its output target for this fiscal year. Singareni´s better-than-expected output will ensure sufficient supplies to south India-based power plants it caters to, at a time when the country is facing a severe shortage of coal. Singareni´s output is just about 10 per cent of what Coal India digs out. But its small size and focus on one state, Telangana, has helped it beat its production targets for years, unlike Coal India that has its mines across the country.
The company will be able to produce about 1-1.5 million this fiscal year from the new underground mine, according to a company source. Most of India´s mines are easy-to-operate open cast pits. The company expects to produce a total of 55 million tonne in the current fiscal year and 56 million the year after that.
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