Coal India aims for 1 billion tonne output by FY2026–27 as national production hits new high
Coal India Limited (CIL), the state-run coal giant, is charting an ambitious course to scale its production to 1 billion tonnes (BT) by financial year 2026–27. It was announced by Union Minister for Coal G. Kishan Reddy. His announcement has come in the context of the country achieving a record-breaking 1,047.67 million tonnes of total domestic coal production in FY2024–25. It represents a growth of 4.99 percent over the previous fiscal year’s figure of 997.83 million tonnes.
CIL’s individual contribution to this national output stood at 781.07 million tonnes for FY2024–25, registering a marginal increase from 773.81 million tonnes in the previous year. Despite the modest year-on-year growth, CIL remains the central pillar of India’s coal production ecosystem, and its performance is considered vital to achieving the country’s broader energy security objectives. The company is aiming to ramp up production further, targeting 875 million tonnes in FY2025–26, 1,004 million tonnes in FY2026–27, and eventually reaching 1,131 million tonnes by FY2030. These targets are part of the government’s broader strategy to raise total domestic coal output to approximately 1.5 billion tonnes by 2029–30.
To meet these production goals, Coal India is increasingly investing in modern mining technologies and infrastructure. The company is deploying mass production technologies such as Continuous Miners in underground mines, developing highwall mining systems, and establishing large-capacity underground operations. It is also enhancing mechanisation in opencast mines by introducing advanced, high-efficiency equipment to boost output and improve safety. These technological upgrades are essential to increase productivity, reduce operational delays, and minimise the environmental footprint of mining operations.
In parallel, the coal ministry has launched several strategic initiatives to reduce India’s dependency on coal imports, especially for sectors such as steel that rely on coking coal. Among them is the Coking Coal Mission, which aims to expand domestic availability and secure supplies for industrial use. The government has also introduced an Import Monitoring System to track and potentially substitute non-essential coal imports with domestic production. While most of India’s thermal coal demand is currently met by domestic producers, imports continue to play a role in meeting the demand for high-grade non-coking and coking coal, which are not readily available in sufficient quantity within the country.
As India’s energy needs continue to grow, the government is banking on Coal India’s ability to deliver on its ambitious production targets. The combined focus on domestic capacity building, modernisation of mining practices, and strategic import substitution underscores the pivotal role coal will continue to play in India’s energy mix over the next decade, even as the country simultaneously pursues its clean energy transition goals.
