India’s captive and commercial coal production increased 14.9% year-on-year to 17.88 million tonnes (MT) in June 2026, while coal dispatch reached 18.55 MT. The Ministry of Coal attributed the growth to policy reforms, improved mine operations, and the commencement of three new coal mines, strengthening domestic coal supply for the energy and steel sectors.
Key Highlights
- Coal production from captive and commercial mines rose 14.9% to 17.88 MT in June 2026.
- Coal dispatch increased to 18.55 MT during the month.
- Three new coal mines commenced production in the first quarter of FY27, adding 7.51 MTPA capacity.
- Domestic coking coal production received a boost with the operationalisation of the Urtan coal block.
New Delhi, July 02: India’s captive and commercial coal mining sector continued its strong growth trajectory in June 2026, with coal production rising 14.9% year-on-year to 17.88 million tonnes (MT), reflecting improved operational efficiency, higher capacity utilisation, and sustained policy support from the Government.
According to the Ministry of Coal, coal dispatch from captive and commercial mines also remained robust, reaching 18.55 MT during June 2026, ensuring a steady supply of coal to power plants and industries.
Coal production during the month increased from 15.56 MT in June 2025 to 17.88 MT in June 2026, highlighting the continued expansion of India’s domestic coal mining sector.
During the first quarter of FY2026-27 (April-June), cumulative coal production from captive and commercial mines registered a 5.35% increase over the corresponding period of the previous financial year, while coal dispatch recorded a 1.70% year-on-year growth, demonstrating sustained demand across key sectors.
The Ministry of Coal attributed the sector’s positive performance to policy reforms, regulatory facilitation, operational improvements, and continuous engagement with stakeholders, which have helped improve mine productivity and strengthen production planning.
According to the ministry, the sector has recorded a compound annual growth rate (CAGR) of approximately 10.7% in coal production between FY2024-25 and FY2026-27, reflecting a consistent upward trend in domestic coal output.
A major development during the quarter was the commencement of production from three new coal mines — Urtan, Dhirauli, and Bikram. Together, these mines contribute a combined Peak Rated Capacity (PRC) of 7.51 million tonnes per annum (MTPA), significantly enhancing India’s coal production capacity.
Among these, the Urtan coal block holds particular strategic importance as it is a coking coal mine. Coking coal is an essential raw material for steel manufacturing, and increased domestic production is expected to reduce India’s dependence on imported coking coal, strengthen raw material security for the steel industry, and improve supply chain resilience.
The Ministry noted that the operationalisation of the new mines will enhance domestic coal availability, improve energy security, and support the expanding requirements of the power, steel, cement, and other industrial sectors.
The continued increase in coal production also aligns with the Government’s objective of achieving greater self-reliance in the coal sector, reducing import dependence, and ensuring uninterrupted fuel supplies to support India’s growing economy.
Conclusion
The 14.9% increase in coal production during June 2026 highlights the strong performance of India’s captive and commercial mining sector. Backed by policy reforms, new mine operationalisation, and improved efficiency, the sector is strengthening domestic coal availability, supporting the energy and steel industries, and advancing the Government’s vision of Atmanirbhar Bharat through enhanced energy security and reduced import dependence.
