India has set an ambitious coal production target of 1.5 billion tonnes for FY30 to reduce reliance on imports and meet domestic demand through indigenous sources, according to Coal and Mines Minister G. Kishan Reddy in a written reply to the Rajya Sabha on 28 July.

For the first time, India surpassed 1 billion tonnes of coal output in the last fiscal year. A production target of 1 billion tonnes by FY27 has now been set for Coal India alone, which will further increase to 1.13 billion tonnes by FY30. In FY25, Coal India produced 781.07 million tonnes, reflecting a growth of 0.94 per cent.

The increased output has enabled India to meet most of its coal needs domestically. Imports continue, but primarily for essential grades such as coking coal and higher-grade non-coking coal, which are either scarce or unavailable locally.

The minister stated that achieving the 1.5 billion tonnes target would require an annual growth rate of 6–7 per cent. Several initiatives are underway to ramp up domestic production, including a Single Window Clearance system, regulatory amendments allowing captive mines to sell up to 50 per cent of surplus output, project expansions, and the auction of coal blocks for commercial mining.

The government has also allowed 100 per cent Foreign Direct Investment (FDI) in commercial mining and introduced incentives for early production and coal gasification or liquefaction.

Commercial mining terms have been liberalised with no restrictions on utilisation, and Coal India has implemented various measures to boost output.

To further reduce coal imports, the Centre has increased the Annual Contract Quantity (ACQ) for gas transport and launched a Coking Coal Mission to enhance supply to the steel sector. Coking coal linkage tenures have been extended to up to 30 years, all aimed at import substitution and energy security.