Mumbai (Agencies): Coal India, the world's largest coal miner, on Monday registered third-quarter profit that lagged market estimates and said a federal ban on mining would further affect production this fiscal year.

Kolkata-based Coal India accounts for nearly 80 per cent of India's coal output. In November, the government raised $3.4 billion from a 10 per cent stake sale in the firm, marking the country's largest ever initial public offering.

Requirement for coal is forecast to grow 11 per cent annually in India, as the country aims to halve its peak-hour power deficit of nearly 14 per cent over the next two years and triple its generation capacity over the next decade.

Coal India did not provide comparable financial numbers for the year-ago quarter, when it was not publicly listed, but said shipments increased by 3 per cent to 110.52 million tonnes. Coal output rose 2.5 per cent to 113.85 million tonnes.

The company claimed a moratorium on some mining projects, which has been extended till March 2011, has severely hit production in the current fiscal year.

India has 10 per cent of the world's coal reserves, the biggest after the United States, Russia and China, but loss from local supplies have grown rapidly with the increase in coal-fired power plants and the country is likely to import 84 million tonnes in the current financial year.

Coal India's April-October output followed the government-set target by 22 million tonnes, its technical director had said. It registered fiscal third-quarter profit of 26.3 billion rupees and net sales of 126.9 billion rupees.

The firm has set aside $1.2 billion for abroad acquisitions in the year to March 2011 and is evaluating at least three proposals for buying stakes in overseas coal firms.