India recorded a notable 8% month-on-month rise in coal production during August, even as the monsoon season posed operational challenges and typically subdued demand. Yet, when looking at the broader period from April to August, output slipped slightly by 0.6% year-on-year.
Between April and August of the current fiscal year, India’s domestic coal production stood at 381.75 million tonnes, just below the 384 million tonnes produced in the same period last year. In August alone, output reached 69.87 million tonnes, an improvement over 64.86 million tonnes in July, though still short of the month’s set target of 73.77 million tonnes.
The state-run giant Coal India Limited remained the key driver, contributing nearly 76% of the nation’s production so far this year. Its dominance reflects the company’s central role in securing India’s energy supply.
Coal despatch—the movement of coal to power plants and industries—also showed growth, rising 5.2% sequentially. Deliveries to non-regulated sectors, such as steel and cement, remained flat, inching up by only 0.2%. On the power front, coal played a pivotal role, accounting for 63% of India’s electricity generation in August and nearly 65% of generation between April and August.
Responding to questions during the monsoon session of Parliament, Coal Minister G. Kishan Reddy highlighted that most of India’s coal needs are met through domestic production. Imports largely comprise coking coal and higher-grade non-coking coal, categories that remain scarce within India’s reserves.
India’s coal output had already crossed 1 billion tonnes in FY 2024–25. To meet future demand while reducing reliance on imports, the minister emphasized the need for a 6–7% annual growth rate in domestic production. This pace, he noted, would enable India to achieve its ambitious target of producing 1.5 billion tonnes of coal by FY 2029–30, ensuring greater self-sufficiency in energy.
