Will supply 906 million tonnes of coal to power sector in FY26: Coal Ministry

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The Ministry of Coal will supply at least 906 million tonnes (MT) of coal to energise India's thermal power plants for the country to meet its peak demand in FY26, Vismita Tej, Additional Secretary, Ministry of Coal told reporters on February 7.

The requirement for FY26 is 3.66 per cent higher compared to the power sector's demand of 874 million tonnes (MnT) in FY25.

"For FY26, the Power Ministry has communicated their demand with us which is 906 MnT. Accordingly, we will be distributing it (target) amongst our three major coal-producing sources - Coal India, captive and commercial mines and Singareni Collieries Company Limited. This is as far as the power demand is concerned," Tej said.

When asked about the ministry's preparedness for this summer, Tej said meetings are happening at the inter-ministerial level twice a week and at the secretary level once a month for planning coal supply in the approaching summer season.

"Look, to have a comfortable summer, at least 50 MnT of coal stock is required at the thermal power plants (TPPs). We can say we will easily be able to keep that up because, on the 24th of January, TPPs had a stock of 47 MT. As of today,y we have 49.2 MT of coal at TPPs. We are well prepared for the summer ahead," she said.

Union Minister for Coal and Mines G Kishan Reddy said the ministry is also working on the plans for smooth supply and transportation of coal. "Approximately 74 percent of power generation in India relies on TPPs, reaffirming the need for a robust and sustainable coal sector. Our efforts have significantly reduced reliance on imported coal," he said.

Between April and November 2024, coal imports declined by 5.35 percent, saving approximately $3.91 billion (Rs 30,007.26 crore). Notably, coal imports for domestic power plant blending fell by 23.56 percent, the Minister said.

As per official data, total coal production rose by 5.88 per cent to 830.66 MT in the April-January period compared to 784.51 MT in the corresponding period of the previous fiscal year.

The cumulative coal dispatch up to January 2025 has risen to 843.75 MT, marking a 5.73 per cent increase from 798.02 MT recorded during the corresponding period of the previous year.

Secretary, Ministry of Coal, Vikram Dev Dutt, said the government is also working on its plan to go public with two subsidiaries of Coal India Limited - Bharat Coking Coal Limited (BCCL) and Central Mine Planning and Development Institute Limited (CMPDIL). "By third or fourth quarter of FY26 we will be ready, but it would also depend on the market," he said.