Coal India Ltd (CIL) would double its production capacity in the state of Chhattisgarh, from 110 million tonnes to 220 million tonnes by the year of 2017-18, the state-run miner's CMD S. Narsing Rao said on Sunday.

Speaking to reporters, Rao said, "If rail connectivity is established, then in the next 5-6 years production capacity from our subsidiaries would double from the current level of 110 mt."

Coal India Ltd (CIL), the world's largest coal miner, has announced its plans to gradually limit e-auction volume to 49 million tonnes (MT), nearly 7 per cent of its production, over the coming 4-5 years.

S Narsing Rao, chairman of the state-owned mining giant, said, "E-auction sales would be gradually stabilised at 49 MT over the next four-five years."

India will continue to suffer shortage of coal in spite of government's attempts to rope in private sector companies to enhance production, Coal India Ltd. (CIL) said.

CIL, the world's biggest coal producer, is confident that it would be able to increase coal production by another 180 million tonne (MT) during the 12th Five Year Plan period, but warned that it would not be sufficient to meet the country's energy requirements.

The board of Coal India has approved a proposal that will result in the state run firm once again ensuring at least 80 per cent supply of coal to all of its contractual partners.

The board did not agree on fixing a revised penalty structure and it is likely to meet again soon to device upon the issue. Under the fuel supply agreement (FSA), the company has to supply at least 80% of the fuel contracted to power generating firms that purchase coal from Coal India.