Is Coal India on Track to Achieve 875 Million Tonnes Target for 2025-26?
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Synopsis
Coal India Ltd is setting ambitious targets for coal production, aiming for 875 million tonnes by 2025-26. With the monsoon impacting recent output, can they overcome the challenges and meet industry demands? Discover the strategies and expectations from the CMD Sanoj Kumar Jha.
Key Takeaways
- Coal India Ltd aims for 875 million tonnes production target by 2025-26.
- The company controls 80 percent of India's coal production.
- Recent monsoon rains disrupted mining operations.
- CIL plans to increase production in coming months to meet targets.
- Coal output in FY26 is projected to exceed 1.15 billion tonnes.
Kolkata, Nov 9 (NationPress) Coal India Ltd is gearing up to boost its production in the upcoming months, aiming to meet a substantial target of 875 million tonnes for the current financial year, as stated by the public sector company's Chairman and Managing Director Sanoj Kumar Jha on Sunday.
While engaging with journalists during the event celebrating the 59th Foundation Day of Hindustan Copper Ltd, Jha remarked, 'Today I can't confirm whether we will achieve the production target for 2025-26. However, we are determined to reach close to that goal.'
The production output of CIL, which is responsible for 80 percent of India's coal production, faced challenges during September and October due to extensive monsoon rains disrupting mining activities.
Despite these hurdles, the CMD expressed optimism that CIL would fulfill the industry’s coal demands and hold more stocks by year-end compared to the previous year. The despatch target for Coal India stands at 900 MT for 2025-26.
In October, CIL's production saw a 9.8 percent decline to 56.4 million tonnes, although this figure was an improvement over the 48.97 MT produced in September, as rainfall was heavier that month. The company plans to ramp up production in the remaining five months of the financial year to compensate for the shortfall.
In FY25, CIL produced 781 million tonnes, while the overall coal output in the country, including both captive and commercial mines, exceeded one billion tonnes in FY25 and is projected to reach 1.15 billion tonnes in FY26.
Jha, who previously served as Additional Secretary in the Ministry of Coal, assumed his role as CMD of CIL on November 1.
Furthermore, the Coal India CMD indicated that regulations for the proposed coal exchange will be established within the next six months.
The draft regulations for the upcoming coal exchange are expected to be finalized by the end of November, following the review of public feedback, as stated by Coal Secretary Vikram Dev Dutt recently.
As per the draft rules, the coal controller organization (CCO) will be designated to oversee and regulate the coal exchanges to be set up nationwide. The Ministry of Coal had sought comments from stakeholders by mid-October.
Point of View
The commitment of Coal India Ltd to increase coal production is vital for sustaining India's energy needs. The challenges posed by weather conditions highlight the need for resilient strategies in the industry. Continual efforts to meet production targets while ensuring regulatory compliance will be essential in shaping the future of coal mining in India.
NationPress
09/11/2025
Frequently Asked Questions
What is Coal India's production target for 2025-26?
Coal India's production target for 2025-26 is set at 875 million tonnes.
How did the monsoon affect Coal India's production?
The prolonged monsoon rains impacted Coal India's production negatively during September and October, causing a decline in output.
What is the total coal output projected for FY26?
The total coal output for India, including captive and commercial mines, is projected to reach 1.15 billion tonnes in FY26.
Who is the current Chairman of Coal India?
The current Chairman and Managing Director of Coal India is Sanoj Kumar Jha, who took over on November 1.
What are the regulations regarding the coal exchange?
Regulations for the proposed coal exchange will be finalized by the end of November, with a coal controller organization being set up to oversee operations.
