Delhi, July 2: India’s captive and commercial coal mining sector continued its growth momentum in June 2026, recording higher production and dispatch during the month.
Coal production from captive and commercial mines stood at 17.88 Million Tonnes (MT) in June 2026 of FY 2026–27, while coal dispatch reached 18.55 MT. Production increased by 14.9% over June 2025, when output stood at 15.56 MT.
During the first quarter of FY 2026–27, from April to June 2026, cumulative coal production increased by 5.35% compared with the corresponding period of the previous financial year. Coal dispatch during the quarter also recorded a year-on-year increase of 1.70%.
The performance reflects continued improvements in mine operations, capacity utilization and production planning. The accompanying graph depicts the trend in coal production and dispatch in Million Tonnes.
The accompanying graph illustrates the trend in production and dispatch (Million tonnes)
The captive and commercial coal mining sector continued to demonstrate sustained growth during Q1 FY 2026–27. Coal production from captive and commercial mines during the first quarter has grown at a CAGR of approximately 10.7% between FY 2024–25 and FY 2026–27, reflecting a steady upward trend in domestic coal production.
During the quarter, three coal mines Urtan, Dhirauli and Bikram commenced coal production. Together, these mines have a combined Peak Rated Capacity (PRC) of 7.51 MTPA.
The operationalization of these mines is expected to enhance domestic coal availability, strengthen supply security and support the growing requirements of the country’s energy and industrial sectors, thereby contributing to economic growth.
The commencement of production from Urtan, a coking coal block, is particularly important as coking coal is a key raw material for steel production. The mine is expected to strengthen the availability of domestic coking coal for the steel sector and support efforts to reduce reliance on imports.
The Ministry of Coal attributes the sector’s progress to policy initiatives, regulatory facilitation and sustained engagement with stakeholders. These efforts have enabled timely operational clearances, improved capacity utilisation and strengthened coal production and dispatch from captive and commercial coal mines.
