New Delhi, July 28 — Union Coal and Mines Minister G. Kishan Reddy informed Parliament that Coal India Ltd. (CIL), the country’s largest coal producer, is projected to achieve a production target of 1,004 million tonnes in the financial year 2026–2027. This milestone aligns with India’s broader strategy to meet rising domestic energy demands and reduce reliance on non-essential coal imports.
In a written reply to the Rajya Sabha, the minister stated that CIL produced 781.07 million tonnes of coal in FY 2024–2025, contributing significantly to India’s total domestic coal output of 1,047.67 million tonnes, which marked a 4.99% year-on-year growth. The government has set a national coal production target of 1.5 billion tonnes by FY 2029–2030, with an expected annual growth rate of 6–7%.
To support this expansion, the Ministry of Coal has implemented several reforms, including:
- Single Window Clearance for faster project approvals
- Amendments to the Mines and Minerals (Development and Regulation) Act, 1957, allowing captive mines to sell up to 50% of their output commercially
- Promotion of Mine Developer and Operator (MDO) mode for efficient production
- Adoption of mass production technologies and expansion of existing projects
- Auctioning of coal blocks to both private entities and public sector undertakings for commercial mining
- Allowing 100% Foreign Direct Investment in commercial coal mining
The minister emphasized that most of India’s coal requirements are met through indigenous production, with imports limited to essential grades such as coking coal and high-grade non-coking coal, which are scarce or unavailable domestically. The government aims to further reduce these imports by ramping up domestic output and enhancing energy security.
