Coal India’s largest subsidiary South Eastern Coalfields Limited (SECL) says it is taking steps to improve the quality of its coal, after it received 55 complaints from power generation companies — including Jindal Power Limited (JPL), NTPC Ltd and GMR Warora Energy Limited (GWEL) — regarding poor quality of coal supply between April 2016 and September 2016. Issues were identified with coal from Kusmunda, Gevra, Raigarh and Bishrampur. The complaints had come from Jindal Power, NTPC and MSPGCL, DCM Shriram among others.

SECL said that the steps in progress to address the issue include revision of mine and siding grades, and third party sampling of coal quality. SECL is facing multiple challenges in land acquisition for new projects, and forest clearances and environment clearances delaying existing projects. This has limited its ability to boost production without compromising quality. Overmining and overuse of degraded sidings and mines impact the resulting coal.

Issues of rehabilitation and resettlement have plagued Coal India throughout the past year, with protests in states like Odisha affecting production at Mahanadi Coalfields, CIL's coal producing subsidiary. Coal India's share price is near its year low, due to misses in production and offtake targets.