Bank of America Merrill Lynch (BofA-ML) estimates 1 billion tonnes coal production in India by financial year 2020. "Our estimates have upside risk as we are not building in any speedup in allocated/ auctioned mines," it said.

CIL is likely to deliver at least 835 million tonnes coal by FY20E, BofA-ML opined. Its assessment is based on announced projects for 908 million tonnes production by FY20E. It expects allotted/ auctioned mines are likely to produce 112 million tonnes coal by FY20E.

"CIL is up to the challenge. Our high conviction on evacuation and land acquisition issues are based on field surveys. Our detailed analysis of evacuation lines is given in Rail lines for evacuation: four lines are needed not three,'' said BofA-ML.

Further BofA-ML said, ''Machinery also an important part. The CIL expansion plan will provide a USD 8.5 billion opportunity for any mining machinery supplier and so CIL is likely to get a favorable term on supply/ prices."

"The Street has been rightly concerned about land acquisition issues. CIL needs 4,000 ha per annum. Moreover, it has created a special cadre for land acquisition that should smoothen the process,'' it added.

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