Coal India Production Drops 7.5 PC in Q1

New Delhi: State-owned CIL on Wednesday said coal production dropped 7.5 per cent to 169.6 million tonne (MT) in the first quarter of current fiscal year. The drop came despite robust demand from the power sector, which has seen unprecedented consumption levels this summer.

Coal India Ltd (CIL) which accounts for over 80 per cent of the country’s coal output, produced 183.3 MT in the April-June period of the previous fiscal year. Coal production by the maharatna firm also dropped marginally by 0.6 per cent to 57.4 MT in June from 57.8 MT in June last year.

Coal arms of CIL that registered a negative growth in June include Bharat Coking Coal Ltd (BCCL) and Mahanadi Coalfields Ltd (MCL). Coal India subsidiaries registering positive growth during the month under review are South Eastern Coalfields Ltd (SECL), Eastern Coalfields Ltd (ECL), Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL), the filing said.

However, Coal India’s offtake, or sales to customers, rose 7.5 per cent to 65.8 MT during the last month over 61.2 MT a year ago. The coal offtake in the April-June period also increased 3.5 per cent to 197.7 MT, over 191 MT in the year-ago period, CIL said.

Power Minister Manohar Lal Khattar had earlier said India has met its all-time peak power demand of 271 GW in May 2026 and has made preparations for a 300 GW capacity for the coming year with the demand projected to rise by another 30 GW. This (meeting 271 GW demand) was not merely a technical achievement, but a result of strategic planning, investment, and reforms implemented over the last 12 years under the leadership of Prime Minister Narendra Modi, he had said.

Khattar had said India ahs successfully maintained energy security despite recent geopolitical events, particularly the West Asia conflict.

CIL’s output dropped 1.7 per cent to 768.1 million tonnes in FY26. The company produced 781.1 MT in FY25. According to CIL’s provisional data, the March output dropped to 84.5 MT from 85.8 MT in the year-ago period.

Coal India Ltd is the main fuel supplier to the country’s power sector, providing the bulk of coal required by thermal power plants. Its role is central to energy security, especially as coal still accounts for roughly 70 per cent of India’s power generation.

CIL operates through eight main fully owned producing subsidiaries, a planning/consultancy wing, and a foreign subsidiary in Mozambique. Major subsidiaries include BCCL, CCL, ECL, MCL, NCL, SECL, WCL, and CMPDIL. These subsidiaries collectively manage the majority of India’s coal production.

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