Bhubaneswar, Jan 8 (IANS): Coal India Ltd would cross the 650 million tonne production mark during financial year 2020-21, Chairman Pramod Agrawal said on Friday.

Coal India produced 405 million tonne coal by the third financial quarter ending December 31, 2020, which has a contribution of 101.8 million tonne from Odisha-based Mahanadi Coalfields Ltd (MCL).

The CIL chief said there is need to produce more coal as demand for dry fuel is expected to rise post-Covid-19 pandemic.

Agrawal, who was on a day-long visit to the MCL's Talcher coalfields, inspected mining and coal evacuation operations there.

He said Coal India is giving much emphasis on increasing production as it committed to fulfil the energy needs of the country.

"Need of the country is to produce more and more coal," Agrawal said, highlighting rising demand for coal to meet energy requirement for revival of industry post-Covid-19 restrictions.

There was a sudden fall in demand of coal due to pandemic, which had forced subsidiaries to slow down production and focus on other related works like removal of overburden and strengthening of infrastructure for coal transportation.

He appreciated MCL for commendable growth in all the major parameters of production, despatch and overburden removal.

"MCL has done very good till now, but more challenges are ahead," said Agrawal, who also laid the foundation stone of Bhubaneswari coal handling plant (CHP) Phase II, which is part of First Mile Connectivity (FMC) projects in MCL.

Bhuabneswari CHP Phase-II, having estimated cost of Rs 247 crore, will have coal handing capacity of 15 million tonne per annum.

MCL Chairman-cum-Managing Director P.K. Sinha, along with Director (Technical/Operations) O.P. Singh and Director (Personnel) Keshav Rao accompanied the Chairman during his visit.

Earlier at a meeting with the leaders of MCL's trade unions, Agrawal appreciated their constructive role towards growth of the country.