India Sets FY30 Coal Output Target at 1.5 Billion Tonnes
COAL & MINING

India Sets FY30 Coal Output Target at 1.5 Billion Tonnes

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.

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. 

Next Story
Infrastructure Energy

MGL, Oil India Ink Pact To Boost LNG And Clean Energy Projects

Mahanagar Gas Limited (MGL), one of India’s leading City Gas Distribution companies, and Oil India Limited (OIL), a Maharatna public sector enterprise with integrated operations across the oil and gas value chain, have signed a Memorandum of Understanding (MoU) on 6 October 2025.The agreement was signed by MGL’s Vice President (BD, BIS, Commercial & STU) and OIL’s Executive Director (BD), in the presence of MGL’s Managing Director, along with OIL’s Director (Operations) and Director (HR).MGL, which has successfully entered the LNG value chain, currently operates LNG retail statio..

Next Story
Infrastructure Urban

KRN Acquires Bus AC Unit Of Sphere Refrigeration Systems

KRN Heat Exchanger and Refrigeration Limited, a leading manufacturer and exporter of aluminium and copper fins, copper tube heat exchangers, water coils, and condenser and evaporator coils, has announced a major step in its expansion journey.Its wholly owned subsidiary, KRN HVAC Products Private Limited, has signed a Business Transfer Agreement (BTA) with Sphere Refrigeration Systems Private Limited (SRSPL) to acquire its Bus Air-Conditioning division.Under the agreement, KRN HVAC will assume control of all operations, assets, and employees associated with SRSPL’s Bus Air-Conditioning busine..

Next Story
Infrastructure Energy

Oil India, MGL Join Hands To Explore Clean Energy Ventures

Oil India Limited (OIL), a Maharatna public sector enterprise with integrated operations across the oil and gas value chain, has signed a Memorandum of Understanding (MoU) with Mahanagar Gas Limited (MGL), one of India’s leading City Gas Distribution companies. The agreement was formalised on 6 October 2025 by senior executives from both organisations, in the presence of OIL’s Director (Operations) and Director (HR) and MGL’s Managing Director.OIL is currently pursuing an extensive hydrocarbon exploration and development programme, with plans to substantially increase gas production and ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?