New Delhi, 5 July (IANS). India is on the way to achieve a record of 1.15 billion tonnes in FY 2025-26. This information was given in a report on Saturday.
According to data compiled by CARARAGE ratings, the country’s domestic coal production touched an all -time high level of 1,047.6 million tonnes in FY 2025, growing at an average annual rate of 10 percent in the last five years. This increase is being seen under a series of policy reforms with the aim of making coal mining more efficient and self -sufficient.
Major government initiatives such as single window clearance system, mine developer and operator (MDO) model, 100 percent FDI permission in coal mining and regular auction of coal blocks have helped promote domestic production.
The amendment in the Mines and Minerals (Development and Regulation) Act has also played a major role in removing regulatory obstacles and attracting private players.
The increase in coal production is due to the increasing demand for the power sector, which in the FY 2025 had 82 percent of the total coal dispatch.
The report said that India’s total coal consumption increased from 922.2 million tonnes in financial year 2021 to 1,270 million tonnes in FY 2025 due to increasing power needs in industries, homes and rural areas.
The domestic coal stake in the total consumption has also increased, which increased from 77.7 percent in FY 2021 to 82.5 percent in FY 2025.
This change towards self -sufficiency has been supported by the allocation of 184 coal mines by January, out of which production has started in 65 blocks.
The report said, “These active mines produced around 136.59 million tonnes in FY 2025, which records more than 34 percent increase compared to the previous year.”
The largest coal producer Coal India Limited (CIL) contributed about 74 percent to the total production in FY 25.
Private and captive miners also performed better.
In the 12th round of the coal block auction launched in March, 28 more mines were offered to increase domestic production. Meanwhile, there has been a steady decline in coal prices due to better supply conditions and assistant government policies.
According to the report, this trend is expected to continue in FY 2026, making coal more economical for industries.
-IANS
SKT/
