An important Indian government official overseeing coal production said that Coal India Ltd., the state-run miner in India, will keep up its production increases to satisfy the country’s rising demand and contribute to expanding inventories.

On Monday, the producer reduced its forecast volumes for the upcoming fiscal year and indicated that it might miss an output target for the year through March. The news and a drop in open-market sales premiums caused shares to drop.

In a late-Tuesday interview, Federal Coal Secretary Amrit Lal Meena stated, “There are no guidelines to the company to cut production. There may be limitations here and there in some mines related to land or clearances.”

According to Meena, the demand for coal in India’s power industry is expected to increase 6.5% to 874 million tons in the upcoming fiscal year, which will drive miners to increase their output.

On February 19, plant stockpiles totaled 39 million tons, or enough to last for an average of 15 days. By the end of March, the goal is to raise stocks to a maximum of 43 million tons, he stated.