India crosses 1 billion tonnes coal production mark

Coal India Limited (CIL), the largest coal producer in the country, contributed 781.07 MT (provisional) reflecting a modest growth of 0.94% from the previous year.

The domestic coal production in India has crossed the landmark figure of 1 billion tonnes (BT) in the financial year 2024–25 with total output reaching 1047.67 million tonnes (MT) a 4.99 percent increase over 997.83 MT in 2023–24.

Coal India Limited (CIL), the largest coal producer in the country, contributed 781.07 MT (provisional), reflecting a modest growth of 0.94 percent from the previous year. The government has set a target for CIL to achieve 1 BT production by 2026–27.

With most of the country’s coal demand met through domestic production, imports are mainly limited to essential coking coal and higher-grade non-coking coal due to limited domestic reserves. To curb non-essential imports and meet growing demand, domestic coal production is expected to grow annually by 6–7 percent, reaching around 1.5 BT by 2029–30.

In line with this goal, government has initiated several steps to ramp up domestic coal production and to eliminate non-essential import of coal in the country. Some of the major initiatives undertaken include Single Window Clearance, amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50 percent of their annual production after meeting the requirement of the end use plants, production through MDO mode, increasing use of mass production technologies, new projects and expansion of existing projects and auction of coal blocks to private companies/PSUs for commercial mining. Hundred percent (100 percent) Foreign Direct Investment has also been allowed for commercial mining.