Coal India aims for 1 billion tonnes output

New Delhi

Coal India Limited (CIL), the country’s largest coal producer, is expected to cross the 1 billion tonnes production mark by 2026–27, Union Coal and Mines Minister G. Kishan Reddy informed the Rajya Sabha on Monday. In 2024–25, CIL produced 781.07 million tonnes of coal. The official target for 2026–27 is set at 1004 million tonnes.

India’s total coal production has already surpassed 1 billion tonnes in 2024–25, reaching 1047.67 million tonnes — up 4.99% from 997.83 million tonnes the previous year.

The minister said that most coal needs are met from domestic sources. Imports are mainly for coking coal and high-grade non-coking coal, which are limited in Indian reserves. To reduce dependence on imports, domestic production is expected to rise by 6–7% annually, reaching 1.5 billion tonnes by 2029–30.

To meet this goal, the government has launched several initiatives to boost coal output. These include a Single Window Clearance system, changes in the Mines and Minerals Act to allow captive mines to sell up to 50% of their coal, and production through the Mine Developer and Operator (MDO) model.

The government is also encouraging use of modern mining technology, launching new projects, expanding existing mines, and auctioning coal blocks to both private firms and public sector units for commercial mining. To further support growth, 100% Foreign Direct Investment (FDI) has been allowed in commercial coal mining.

These efforts are part of India’s larger plan to strengthen its energy security, reduce imports, and increase self-reliance in coal production over the coming years.