Coal Production Targets and Plans for India

The Indian government has outlined its coal production target and strategic plans for the upcoming years, focusing on increasing output and enhancing coal supply mechanisms.

Production Targets for FY26

• Target Set: 1.15 billion tonnes for FY26, a slight decrease from the previously set 1.19 billion tonnes.
• Comparison: This target is higher than the actual production of 1.05 billion tonnes in FY25.

Policy Changes and Auctions

• Coal Linkages: The Ministry of Coal plans to provide coal linkages to consumers without specific end-use requirements, altering the 2016 non-regulated sector auction policy.
• Auctions: Three auctions planned for FY26, targeting the successful auction of 25 mines.

Current and Future Production Initiatives

• FY26 Production Goals: 203.4 million tonnes from commercial mines, with seven new mines expected to start production within the financial year.
• On-Demand Supply by FY47: Aiming for on-demand coal supply capacity, necessitating additional capacity development.

Expansion Strategies

• New Mines Target: 100 new mines planned to enhance production capacity by 500 million tonnes annually by FY30.
• Progress: 13 mines operationalized in FY25 with a capacity of 83 million tonnes.
• FY26 Plans: Over 20 new mines to be operationalized, adding an aggregate capacity exceeding 80 million tonnes per year.