New Delhi, July 2: India recorded a significant increase in coal production in June 2026, reaching 1.788 crore tons (17.88 million tons). This marks a 14.9% rise compared to June 2025’s production of 1.556 crore tons. The Ministry of Coal reported that during the same period, coal dispatches totaled 1.855 crore tons (18.55 million tons).
In an official statement released on Thursday, the Ministry highlighted that the first quarter of the fiscal year 2026-27 (April to June) saw positive performance in both coal production and supply from captive and commercial mining sectors. Year-on-year, coal production increased by 5.35%, while dispatches rose by 1.70%.
The Ministry attributed this growth to the government’s policy initiatives, regulatory reforms, and continuous coordination with all stakeholders. Improvements in mine operations, capacity utilization, and production planning have contributed to this upward trend.
Additionally, the Ministry announced that three new coal mines—Urtan, Dhirouli, and Bikram—commenced production during the first quarter of the current fiscal year. These mines have a combined peak rated capacity (PRC) of 7.51 million tons per annum (MTPA). Notably, Urtan is a coking coal block, which is crucial for steel production. This development is expected to enhance the supply of coking coal to the domestic steel industry, thereby reducing reliance on imports.
According to the Ministry, between the first quarter of fiscal years 2024-25 and 2026-27, captive and commercial coal production has shown a compound annual growth rate (CAGR) of approximately 10.7%, indicating a consistent increase in domestic coal output.
In a separate statement, the Ministry reported a significant decline in India’s coal imports in April 2026. Total coal imports fell to 21.13 million tons (MT), down from 24.27 million tons in April 2025, marking a decrease of 3.14 million tons (around 12.95%). This reduction is attributed to ongoing efforts by the Ministry to boost domestic production and lessen import dependency.
The Ministry noted that the use of imported coal by power generation plants has significantly decreased compared to last year. In April 2025, power plants imported 4.67 million tons of coal, while this figure dropped to 3.51 million tons in April 2026, reflecting a decline of 24.89%.
The Ministry stated that improved availability and regular supply of domestic coal have reduced the need for imports. Power plants that rely entirely on imported coal saw the most significant drop, with imports falling from 3.97 million tons to 2.88 million tons, a reduction of 27.45%, the largest among all categories.
Furthermore, the share of imported coal in the country’s total coal consumption has also decreased. In April 2025, imports accounted for 21.69% of total consumption, which fell to 19.68% in April 2026, indicating a reduction of over 2%.
However, there has been a slight increase in the import of coking coal used in the steel industry, rising from 5.93 million tons to 6.01 million tons, a 1.34% increase. The Ministry explained that limited domestic reserves of high-quality coking coal and increased steel production have kept imports in this category necessary.
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