India's total coal output by the 2016-17 financial year has been forecast to jump 43 percent to 795 million tonnes (MT) from the estimated 554 MT in the current fiscal year, India's Minister of State for Coal told Parliament on Monday.

About 477 MT of these would be needed by the power companies. These firms have entered into fuel supply agreements with Coal India Ltd. (CIL) for their projects expected to go online on or before March 2015.

However, the projected increases will be dependent obtaining necessary clearances as well as land availability for the necessary coal mining, Zee News Limited quoted Pratik Prakashbapu Patil, Minister of State for Coal, as saying.

"As per the draft report of the working group on coal and lignite set up for formulation of 12th Five Year Plan, the indigenous availability of coal is projected to increase from 554 MT in 2011-12 to 795 MT in 2016-17, provided requisite land is available for coal mining and all other clearances are obtained in time," he said.

In the event of a shortfall, CIL would arrange continuous supply allocation through imports or arrangements with public sector companies, the Minister of State for Coal said.

Of the total figure, CIL will account 615 MT by 2016-17, up 39 per cent from 440 MT for the current financial year, he added.

To achieve the increased production forecast of the raw commodity, India will allocate buffer funds for CIL's overseas coal assets acquisitions as well as for the development of coal blocks in Mozambique, all contained in the 12th Plan, Patil further said.

CIL, which owns two coal blocks in the African nation, has ahout 149 coal projects in varying stages of implementation with a total capacity of 452.96 MT, Patil said. By the end of the 12th Plan, 104 of these are anticipated to produce 327.39 MT.