Eastern Coalfield Ltd. (ECL), a subsidiary of Coal India Ltd., expressed its confidence in achieving its 58-million-tonne coal production target and returning to profitability in the remaining months of the current fiscal year, local media reported, citing Chairman and Managing Director Satish Jha.

This statement came as the company shifted to losses in the third quarter of 2025, mainly due to the prolonged monsoon that disrupted coal production.

Its output shifted to a slide of 5.2% by the end of August, from 2% increase in mid-June. But Jha noted that they had "almost wiped out the negative and came down to a 0.2% dip" by September and October.

The company produced about 52 million tonnes of coal last year. To meet the target and stay financially viable, it has to maintain a minimum monthly output of 4 million tonnes.

"If we produce 4 million tonnes per month and above, financially we will be in the green, not in the red," Jha said. "We now need to produce about 30 million tonnes in the remaining months, which means around 6 million tonnes per month. We have achieved this level earlier as well."

Jha also pointed out that ECL faced high fixed cost structure due to the operations of its old underground coal mines. Production costs at these inherited mines, including the Raniganj coalfield, operational since 1774, account for 67% of its total costs.

These costs are mainly for salary and wages, which rank first among Coal India's subsidiaries. By comparison, Coal India's average wage cost is about 48%, while newer subsidiaries operate with salary and wage costs of 20-25%.

To lower the costs, ECL has identified six underground mines for closure or manpower redeployment within the current financial year, according to Jha.

The company currently operates 80 mines, including 48 underground, 23 open cast and nine mixed mines.