The mine is expected to help the company reach its output target for the current fiscal. It will also ensure adequate supplies to power plants in the southern part of the country.
The coal producer intends to produce 55 million tons for the year ending 31 March 2015 and 56 million tons in the following year.
Singareni Collieries chairman Sutirtha Bhattacharya was quoted by Reuters as saying that the new underground mine will enable the company to produce around 1.5 million tons in the current fiscal.
Bhattacharya added, "We are the only company to provide more than 100 percent of what we commit to our power customers.
"We also make up for others’ deficits and help in lowering imports."
Production rate of Coal India fell short by eight by million tons for the April-August period against estimated production of 183.9 million tons.
