India’s coal sector has kicked off the financial year 2025–26 with a remarkable performance, as captive and commercial mines reported a production of 14.01 million tonnes (MT) and a dispatch of 16.81 MT in April 2025. This achievement reflects a significant year-on-year growth compared to April figures from FY 2023–24 and FY 2022–23, underscoring the sector’s consistent upward trajectory.
Key Drivers of Success
The Ministry of Coal attributes this robust growth to continuous policy interventions, close monitoring, and proactive engagement with stakeholders to expedite operational clearances and boost production capacity. A pivotal factor in this success is the operationalization of newly developed coal blocks, including:
- Kotre Basantpur Pachmo Block of M/s Central Coalfields Limited (CCL), with a Peak Rated Capacity (PRC) of 5 MT per annum (opencast), which commenced operations on April 15, 2025.
- Naini Coal Block of M/s Singareni Collieries Company Limited (SCCL), with a PRC of 10 MT per annum (opencast), which began operations on April 16, 2025.
These new blocks have significantly contributed to the overall coal production, which reached 81.57 MT in April 2025, a 3.63% increase from the 78.71 MT produced in April 2024. Coal dispatch also saw a steady rise, reaching 86.64 MT, up from 85.11 MT in the same period last year.
“The coal stock held by coal companies surged to 125.76 MT as of April 30, 2025, a 22.1% increase from 102.41 MT in the previous year, ensuring a robust supply chain.”
A Strategic Push for Energy Security
The Ministry of Coal’s strategic focus on unlocking the potential of captive and commercial coal mining has been instrumental in meeting India’s growing energy demands. The sector’s growth is further supported by a decline in coal imports, which dropped by 8.4% to 183.42 MT from April to December 2024, compared to 200.19 MT in the same period of the previous year, thanks to increased domestic production.
The operationalization of the Kotre Basantpur Pachmo and Naini coal blocks exemplifies the Ministry’s commitment to enhancing production capacity. Central Coalfields Limited (CCL), a subsidiary of Coal India Limited, and Singareni Collieries Company Limited (SCCL), a joint venture between the Government of Telangana (51% equity) and the Government of India (49% equity), are pivotal players in this growth story.
Looking Ahead
The Ministry of Coal remains steadfast in its mission to ensure seamless production, minimize supply disruptions, and bolster India’s energy security. By fostering an enabling environment through policy reforms and stakeholder collaboration, the Ministry aims to sustain this momentum and further expand the coal sector’s contribution to the nation’s economy.
This robust start to FY 2025–26 signals a promising future for India’s coal industry, with captive and commercial mining playing a central role in powering the nation’s growth.
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