Coal India Targets 900 MT Output in FY26 to Cut Imports
COAL & MINING

Coal India Targets 900 MT Output in FY26 to Cut Imports

Coal India Ltd (CIL) has set a supply target of 900.24 million tonnes (MT) for 2025–26, marking an over 18 per cent rise from the previous year, as part of its strategy to meet rising electricity demand and reduce coal imports. According to its latest annual report, around 74 per cent of this supply is expected to go to the power sector, reinforcing CIL’s pivotal role in maintaining uninterrupted nationwide power supply.
With projected power sector demand at 668.1 MT in FY26, CIL aims to meet the entire requirement of both regulated and non-regulated consumers, substituting imported coal where feasible. This supply goal aligns with the government’s broader vision of ensuring 24×7 electricity to all households and supports CIL’s long-term production plan of reaching 1 billion tonnes by 2028–29.
To ensure sustainable growth, the company is focusing on environmentally responsible practices such as selective mining, coal beneficiation and blending, underground mining expansion, and diversification into clean coal technologies like coal gasification and coal-to-liquid (CTL) projects. It also plans to increase coking coal supplies for the steel sector and support new gasification ventures.
CIL has earmarked a capital investment of Rs 160 billion for FY26 to support volume growth. Additional funds are being allocated for railway infrastructure, thermal and solar power projects, coalbed methane extraction, and the revival of fertiliser units.
In FY25, India’s total power generation rose by 5 per cent to 1,826 billion units (BU), with coal-based generation accounting for 1,299 BU. Against a projected demand of 661 MT, CIL supplied 616.17 MT to the power sector, achieving a materialisation rate of about 93 per cent.
Supply to the non-regulated sector reached 145.3 MT, a growth of 8.1 per cent, while e-auction bookings climbed to 89.38 MT, despite the average e-auction premium easing to 48 per cent from 72 per cent the year before.
Chairman and Managing Director P M Prasad, addressing shareholders, emphasised that CIL is intensifying efforts to future-proof its operations through strategic diversification and asset monetisation. The company is actively pursuing projects in coal gasification, coalbed methane extraction, solar energy, and critical mineral exploration to align with India’s energy transition agenda and reduce reliance on fossil fuels.
In a notable milestone, CIL monetised the Dugda Coal Washery in Bokaro, Jharkhand—valued at Rs 5.04 billion—under a build-own-operate model. This marks India’s first-ever coal washery monetisation under the government’s asset monetisation framework.

Coal India Ltd (CIL) has set a supply target of 900.24 million tonnes (MT) for 2025–26, marking an over 18 per cent rise from the previous year, as part of its strategy to meet rising electricity demand and reduce coal imports. According to its latest annual report, around 74 per cent of this supply is expected to go to the power sector, reinforcing CIL’s pivotal role in maintaining uninterrupted nationwide power supply.With projected power sector demand at 668.1 MT in FY26, CIL aims to meet the entire requirement of both regulated and non-regulated consumers, substituting imported coal where feasible. This supply goal aligns with the government’s broader vision of ensuring 24×7 electricity to all households and supports CIL’s long-term production plan of reaching 1 billion tonnes by 2028–29.To ensure sustainable growth, the company is focusing on environmentally responsible practices such as selective mining, coal beneficiation and blending, underground mining expansion, and diversification into clean coal technologies like coal gasification and coal-to-liquid (CTL) projects. It also plans to increase coking coal supplies for the steel sector and support new gasification ventures.CIL has earmarked a capital investment of Rs 160 billion for FY26 to support volume growth. Additional funds are being allocated for railway infrastructure, thermal and solar power projects, coalbed methane extraction, and the revival of fertiliser units.In FY25, India’s total power generation rose by 5 per cent to 1,826 billion units (BU), with coal-based generation accounting for 1,299 BU. Against a projected demand of 661 MT, CIL supplied 616.17 MT to the power sector, achieving a materialisation rate of about 93 per cent.Supply to the non-regulated sector reached 145.3 MT, a growth of 8.1 per cent, while e-auction bookings climbed to 89.38 MT, despite the average e-auction premium easing to 48 per cent from 72 per cent the year before.Chairman and Managing Director P M Prasad, addressing shareholders, emphasised that CIL is intensifying efforts to future-proof its operations through strategic diversification and asset monetisation. The company is actively pursuing projects in coal gasification, coalbed methane extraction, solar energy, and critical mineral exploration to align with India’s energy transition agenda and reduce reliance on fossil fuels.In a notable milestone, CIL monetised the Dugda Coal Washery in Bokaro, Jharkhand—valued at Rs 5.04 billion—under a build-own-operate model. This marks India’s first-ever coal washery monetisation under the government’s asset monetisation framework.

Next Story
Infrastructure Transport

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Next Story
Infrastructure Urban

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Next Story
Infrastructure Urban

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement