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The Ministry has set a target of opening 100 mines intending to create additional coal production capacity of 500 mtpa.
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ADREES LATIF
India’s coal production will be led by Coal India (CIL), which is likely to account for more than three-fourth of the 1.15 billion tonne (bt) target for FY26, higher than its contribution in the last financial year.
However, the share of Singareni Collieries Company (SCCL), captive and commercial mines in India total coal production is likely to decline in the current fiscal year compared to FY25.
Though on a quantity basis both segments are expected to report better numbers compared to the last fiscal year.
The Ministry of Coal aims to raise its pan-India output by almost 10 per cent y-o-y to 1,150.39 million tonnes (mt) in the current financial year, ending March 2026.
The ambitious target comes after India clocked a record of producing (1,047.68 mt) and dispatching (1,025.25 mt) more than 1 bt of the dry fuel in FY25. The FY25 numbers are provisional.
Targets set
As per the Ministry’s action plan for FY26, CIL will account for 875 mt, or roughly 76.06 per cent, of the total targeted quantity. This is higher than the 74.55 per cent share the mining behemoth had in the 1,047.68 mt output in FY25.
However, it is lower than the 77.53 per cent share the CPSU had in India’s cumulative coal production of 997.83 mt in FY24.
The FY26 share of India’s second largest coal producer, SCCL is at 6.17 per cent, or 72 mt, which is lower than its share in FY25 at 6.59 per cent (69.01 mt).
The Telangana-headquartered CPSU had clocked a share of 7.01 per cent (70.02 mt) of the pan-India coal production in FY24.
Captive & others, which includes commercial coal mines, are likely to account for 17.68 per cent, or 203.30 mt, of production in FY26, which is lower than its share of 18.86 per cent in FY24.
The segment had produced 154.16 mt, or 15.45 per cent, of the total coal extracted in India in FY24.
On-demand Coal
The Ministry aims to supply coal on-demand to the consuming industries by FY47. The creation of additional coal production capacity is needed to boost coal production as well as replace depleting mines.
Accordingly, it has set a target of opening 100 mines intending to create additional coal production capacity of 500 million tonnes per annum (mtpa). During FY25, 13 mines with a capacity of 83 mtpa were operationalised.
In FY26, the Ministry has planned to operationalise more than 20 blocks with an aggregate capacity of 80 mtpa, which will include mines with PSUs as well as captive and commercial mines.
Published on May 25, 2025
This article first appeared on The Hindu Business Line
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