"The new CMD will assume charge by January 5," top sources told PTI.
The Telegana government has released Bhattacharya, who was the CMD of state-run Singareni Collieries Company, with immediate effect, the sources said.
Singareni Collieries Company (SCCL) jointly owned by the Telangana government and Government of India on a 51:49 equity basis. It is the second biggest coal miner after CIL.
Yesterday, the state government named N Sridhar, a 1997 batch IAS officer, as new Chairman and Managing Director of SCCL.
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Coal India was without a fulltime head since S Narsing Rao resigned from the post in May this year to join Telangana government.
Coal Ministry Additional Secretary A K Dubey is presently handling additional responsibility as CMD of the coal mining behemoth.
Meeting coal production target will be one of the key challenges facing the new Coal India Chairman.