India Targets 1.31 Billion Tonnes Coal Output

28 Jan 2026 CW Team

India has set a coal production target of 1.31 billion tonnes for the financial year 2026–27, as it seeks to reduce import dependence amid rising energy demand.

Of the total output, state-run Coal India is expected to produce a record 1.0 billion tonnes, while captive miners are projected to contribute 228 million tonnes in FY27. Singareni Collieries Company Limited, jointly owned by the Telangana and Union governments, is expected to produce the remaining 79 million tonnes, according to official sources.

In FY25, India’s coal production rose by 4.98 per cent year-on-year to 1.05 billion tonnes, the highest ever recorded, ministry data showed. Coal stocks at the country’s thermal power plants stood at 53.7 million tonnes, representing 78 per cent of the normative level as of 19 January, according to the Central Electricity Authority.

The government has taken multiple steps to boost domestic coal availability, including auctioning new mines to increase production. The coal ministry said the focus will be on maintaining consistent output, reducing supply disruptions and supporting the country’s expanding energy requirements.

The ministry is also expected to finalise rules for the proposed coal exchanges by March, amid rising domestic production. Coal exchanges are intended to create an independent marketplace where buyers and sellers can transact coal through a transparent, competitive and efficient price discovery mechanism.

The Coal Controller Organisation will act as the authority to register and regulate coal exchanges. Operating under the coal ministry, the organisation collects and maintains production data from public and private mines, inspects collieries to verify coal classification and quality, and serves as an appellate authority in disputes between consumers and mine owners.

The proposed coal exchange will function as an online trading platform for commercial miners and public sector companies, including Coal India, offering buyers multiple options across coal grades and locations. As transaction volumes increase, price discovery for coal is expected to become more efficient.

India opened the coal sector to private players in 2020 by introducing commercial coal mining through coal block auctions. The ministry has also set an asset monetisation target of Rs 350 billion for FY27, unchanged from the current fiscal year.

India has set a coal production target of 1.31 billion tonnes for the financial year 2026–27, as it seeks to reduce import dependence amid rising energy demand. Of the total output, state-run Coal India is expected to produce a record 1.0 billion tonnes, while captive miners are projected to contribute 228 million tonnes in FY27. Singareni Collieries Company Limited, jointly owned by the Telangana and Union governments, is expected to produce the remaining 79 million tonnes, according to official sources. In FY25, India’s coal production rose by 4.98 per cent year-on-year to 1.05 billion tonnes, the highest ever recorded, ministry data showed. Coal stocks at the country’s thermal power plants stood at 53.7 million tonnes, representing 78 per cent of the normative level as of 19 January, according to the Central Electricity Authority. The government has taken multiple steps to boost domestic coal availability, including auctioning new mines to increase production. The coal ministry said the focus will be on maintaining consistent output, reducing supply disruptions and supporting the country’s expanding energy requirements. The ministry is also expected to finalise rules for the proposed coal exchanges by March, amid rising domestic production. Coal exchanges are intended to create an independent marketplace where buyers and sellers can transact coal through a transparent, competitive and efficient price discovery mechanism. The Coal Controller Organisation will act as the authority to register and regulate coal exchanges. Operating under the coal ministry, the organisation collects and maintains production data from public and private mines, inspects collieries to verify coal classification and quality, and serves as an appellate authority in disputes between consumers and mine owners. The proposed coal exchange will function as an online trading platform for commercial miners and public sector companies, including Coal India, offering buyers multiple options across coal grades and locations. As transaction volumes increase, price discovery for coal is expected to become more efficient. India opened the coal sector to private players in 2020 by introducing commercial coal mining through coal block auctions. The ministry has also set an asset monetisation target of Rs 350 billion for FY27, unchanged from the current fiscal year.

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