India’s coal production is set to receive a boost with the Ministry aiming to open 100 mines in order to increase coal production capacity by 500 mtpa. The target for the current fiscal year, ending March 2026, is to raise coal output by almost 10 per cent year-on-year to 1,150.39 million tonnes. This ambitious goal comes after India achieved a record production and dispatch of over 1 billion tonnes of coal in the previous fiscal year.
Coal India (CIL) is expected to lead the way in achieving this target, accounting for more than three-fourth of the 1.15 billion tonne goal for FY26. This is a higher contribution compared to the previous financial year, indicating the company’s pivotal role in India’s coal sector. However, the share of other players like Singareni Collieries Company (SCCL), captive, and commercial mines is anticipated to decrease in the current fiscal year, even though they are expected to report improved numbers in terms of quantity.
Targets have been set by the Ministry of Coal to ensure a steady increase in coal production, with CIL aiming to contribute 875 mt, representing over 76% of the total targeted quantity. SCCL, the second largest coal producer in India, is projected to account for 6.17% of the total production in FY26. On the other hand, captive and commercial mines are likely to contribute around 17.68% to the coal production in the current fiscal year. The Ministry’s long-term goal is to supply coal on-demand to various industries by FY47, necessitating the creation of additional coal production capacity through the opening of new mines.
Not really sure why this matters, but the Ministry plans to operationalize more than 20 blocks with a total capacity of 80 mtpa in FY26. This includes mines run by Public Sector Undertakings (PSUs) as well as captive and commercial mines. The focus on increasing coal production capacity is essential to meet the growing demand for coal in India and to replace depleting mines. With the implementation of these targets and plans, the coal sector in India is poised for significant growth in the coming years, supporting various industries and sectors reliant on coal as a primary source of energy.