A decline in coal production by key subsidiaries of Coal India Ltd (CIL) was recorded in the 2025–26 financial year, even as demand for the fuel rose due to global energy disruptions.
According to provisional data, output at four major arms - Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL), Western Coalfields Ltd (WCL), and Mahanadi Coalfields Ltd (MCL), declined during the year.
The drop comes at a time when the West Asia crisis has tightened global gas and LNG supplies and pushed up imported coal prices, leading to higher dependence on domestic coal.
BCCL reported a 12.3 per cent fall in production, while CCL output declined 6.1 per cent. WCL saw an 8.8 per cent drop and MCL recorded a 3 per cent decline.
In contrast, South Eastern Coalfields Ltd (SECL) and Northern Coalfields Ltd (NCL) registered growth. SECL production increased by 5.3 per cent, while NCL output rose 1.1 per cent.
Overall, CIL’s production fell 1.7 per cent to 768.1 million tonnes (MT) in FY26 from 781.1 MT in FY25. Coal offtake also declined 2.4 per cent to 744.8 MT from 763 MT in the previous financial year.
Despite the decline in output, there are no reports of supply shortages for the power sector.
“The important and relevant issue is whether CIL met its contractual commitments for supply of coal to coal-based thermal power plants and other industry users.
"From what information is there in public domain, there are no reports of any shortage of contracted coal supplies in power production," former power secretary Anil Razdan told PTI.
He cautioned against excessive production without adequate storage capacity. "Over production of coal just to meet production targets without proper storage could lead to spoilage of coal," he said.
Razdan added that adequate stock levels would be required to meet peak summer electricity demand and to manage potential disruptions during the monsoon.
Former CIL chairman Sutirtha Bhattacharya said production appeared aligned with market demand. "So, in my guess they produced in a non-monopolistic market scenario that required quantity. They must concentrate on quality assurance to become a brand leader."
Hydrocarbon deficit will beef up the market, though, he said, adding that the coal sentiment as an energy source will be notches higher as will be for renewables.
Coal India accounts for more than 80 per cent of domestic coal production and remains the main supplier to thermal power plants, which generate about 70 per cent of India’s electricity.
The government has said domestic production is meeting demand and highlighted steps such as e-auctions to ensure supply. CIL has planned 29 e-auctions offering about 23.56 MT of coal this month.
Of these, five auctions conducted since March 12, 2026, saw 73.1 lakh tonnes offered and 31.96 lakh tonnes booked.
CIL operates through several subsidiaries, including BCCL, CCL, MCL, NCL, SECL, WCL, Eastern Coalfields Ltd and Central Mine Planning and Design Institute Ltd, which together account for the bulk of coal production in the country.
