New Delhi, July 5
India is on track to achieve a record coal production of 1.15 billion tonnes in the financial year 2025-26, according to a new report.
The country’s domestic coal production touched an all-time high of 1,047.6 million tonnes in FY25, growing at an average annual rate of 10 per cent over the past five years, as per data compiled by CareEdge Ratings.
This growth has been driven by a series of policy reforms aimed at making coal mining more efficient and self-reliant.
Key government initiatives like the Single Window Clearance system, the Mine Developer and Operator (MDO) model, 100 per cent FDI allowance in coal mining, and regular auctions of coal blocks have helped boost domestic output.
Amendments to the Mines and Minerals (Development and Regulation) Act have also played a major role in removing regulatory bottlenecks and attracting private players.
The rise in coal production has come in response to growing demand from the power sector, which accounted for 82 per cent of the total coal dispatches in FY25.
India’s total coal consumption rose from 922.2 million tonnes in FY21 to 1,270 million tonnes in FY25, driven by increasing electricity needs across industries, households, and rural areas, said the report.
The share of domestic coal in total consumption has also gone up -- from 77.7 per cent in FY21 to 82.5 per cent in FY25.