MC EXCLUSIVE India targets 1.31 billion tonnes coal output in FY27, CIL eyes record 1 BT mark

India has set a target of 1.31 billion tonnes of coal production for the upcoming fiscal year 2026-27 as the country seeks to reduce its import dependence amid rising energy needs.

• India targets 1.31 billion tonnes coal production for FY27
• Coal Exchange rules expected by March to enable transparent coal trading
• Thermal plant coal stocks hit 53.7 million tonnes, 78% of target level.

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India has set a target of 1.31 billion tonnes of coal production for the financial year 2026-27, as it seeks to reduce import dependence amid rising energy needs.

Of the total, state-run Coal India is expected to produce a record 1 BT, while captive players are to produce 228 million tonnes in FY27, official sources told Moneycontrol. Singareni Collieries Company (SCCL), jointly owned by Telangana and Union governments, will produce the remaining 79 million tonnes, sources said.

In FY25, India’s coal production increased 4.98 percent over the previous year to 1.05 BT, the highest ever, data from the ministry showed.

The coal stock at the country’s thermal power plants stood at 53.7 million tonnes, 78 percent of the normative level as of January 19, data from the Central Electricity Authority showed.

The government has taken several steps to increase domestic availability, including auctioning of new mines, to increase production of the fuel.

The emphasis will be on maintaining consistent production, reducing supply interruptions, and making a substantial contribution to the country’s rising energy needs, the coal ministry has said.

The ministry also expects to finalise the rules for the proposed coal exchanges by March, sources said. The need for a coal exchange comes amid the rising domestic production.

Coal exchanges would create an independent market place, where sellers and buyers can transact coal through a transparent, competitive and efficient price discovery mechanism.

The Coal Controller Organisation will serve as the authority to register and regulate coal exchanges.

The Coal Controller Organisation, which operates under the coal ministry, collects and maintains production data of all private and public sector mines and inspect collieries to ensure the correctness of the class, grade or size of coal. It also acts as the appellate authority in case of dispute between consumers and owner.

The proposed exchange will serve as an online trading platform for commercial miners and the public sector companies including Coal India, with buyers having the options in coal grades and location.

Once the sale on the platform reaches a certain threshold, price discovery of the key fuel for power generation will be more efficient.

The government opened the sector to the private players,  introducing commercial coal mining through auctioning of coal blocks in 2020.

The ministry has also set asset monetisation target of Rs 35,000 crore for FY27, same as this fiscal.