Coal India Eyes Record Output of 875 Million Tonnes in FY2025-26, Says CMD Sanoj Kumar Jha

State-run mining giant focuses on efficiency, sustainability, and infrastructure to meet India’s surging power demand

Kolkata (Economy India): In a strong push to secure India’s growing energy needs, Coal India Limited (CIL) is targeting to achieve, or come close to, its ambitious 875 million tonnes (MT) coal production goal for the current financial year 2025–26, said Chairman and Managing Director (CMD) Sanoj Kumar Jha on Sunday.

Jha, who took charge earlier this year, outlined an aggressive roadmap to boost output across all subsidiaries through operational efficiency, capacity expansion, and technology adoption.

“Coal India remains committed to ensuring adequate coal supply to the nation’s power sector. We are confident of achieving close to our 875 MT target this fiscal through improved productivity, faster mine development, and stronger logistics,”
— Sanoj Kumar Jha, CMD, Coal India Ltd.

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Operational Reforms and Capacity Expansion

Coal India, the world’s largest coal producer, has been implementing a robust operational plan to raise production levels across its eight subsidiaries — SECL, MCL, NCL, WCL, CCL, ECL, BCCL, and CMPDI.

The company has focused on:

• Expanding high-capacity mines in Chhattisgarh, Odisha, and Jharkhand.
• Accelerating mine development and overburden removal to unlock new reserves.
• Enhancing mechanisation with surface miners, conveyor systems, and heavy earthmoving equipment (HEMM).
• Strengthening transportation networks via first-mile connectivity projects and dedicated railway sidings.

These steps, officials say, are vital to maintain uninterrupted coal dispatch to the power sector, which consumes around 75% of CIL’s total supply.

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Power Demand Surge and Energy Security

India’s power demand has witnessed a sharp rise in 2025 due to industrial revival, expanding manufacturing activity, and increased household consumption.

According to government data, electricity demand grew by 8% year-on-year in the first half of FY26, prompting thermal power plants to seek additional coal supplies.

“Coal India’s role is pivotal in ensuring the country’s energy security. The focus is not just on quantity, but also on reliability and sustainability,”
— a senior official from the Ministry of Coal stated.

To meet this growing demand, Coal India has prioritized the continuous supply of coal to power utilities under long-term fuel supply agreements (FSAs), while managing spot market requirements through e-auctions.

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Production Milestones and Achievements

In the previous fiscal year (FY2024-25), Coal India reported a record output of 773.6 million tonnes, marking a 10% growth year-on-year. The company also achieved its highest-ever coal dispatch of over 760 million tonnes, despite monsoon-related challenges.

This year, CIL has already surpassed half-yearly production targets, setting the stage for another record-breaking performance.

• FY25 Production: 773.6 million tonnes
• FY26 Target: 875 million tonnes
• FY26 H1 Achievement: Over 430 million tonnes

The company expects strong output in the second half (October–March), traditionally its most productive period.

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Technology Integration and Digital Monitoring

To ensure consistent performance, CIL is integrating digital technologies and real-time monitoring systems across operations. This includes:

• Drone-based mine surveys and volumetric analysis
• AI-driven dispatch management and predictive maintenance systems
• Centralized command centers for real-time performance tracking

The company’s subsidiaries, particularly MCL and SECL, have implemented “Smart Mining Control Rooms” to optimize daily operations, reduce downtime, and enhance safety compliance.

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Sustainability and Environmental Initiatives

While expanding production, Coal India continues to align with India’s commitment to sustainable mining and carbon reduction goals.

Key initiatives include:

• Bio-reclamation and afforestation over 2,500 hectares of mined land.
• Deployment of solar projects across mining regions to reduce operational emissions.
• Water conservation and dust suppression technologies in mines.
• Development of coal gasification projects to diversify into cleaner energy solutions.

“Coal will remain a crucial part of India’s energy mix for decades, but it must be mined responsibly,” Jha reiterated, adding that CIL’s sustainability framework is now integrated with its production planning.

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Government Support and Policy Outlook

The Ministry of Coal has extended strong policy backing to Coal India, facilitating faster environmental and land approvals, and encouraging public-private partnerships for logistics modernization.

The government’s National Coal Logistics Plan (NCLP) aims to establish multimodal connectivity between coalfields and consumption centers, reducing logistics costs by up to 15%.

Analysts believe that these measures, coupled with robust domestic demand, will help Coal India sustain growth momentum beyond FY26.

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Future Outlook

Industry experts project that Coal India could even cross the 880-million-tonne mark this year if favorable weather and infrastructure readiness persist through March 2026.

Meanwhile, the company is preparing a long-term production roadmap to achieve 1 billion tonnes by FY2030, supported by high-capacity mines, technology integration, and private sector partnerships.

Coal India’s 875 MT production target for FY2025-26 stands as a major test of its operational capacity and efficiency. The company’s aggressive expansion, modernization, and sustainability focus not only underscore its strategic importance but also reinforce India’s broader ambition of achieving energy independence and industrial growth.

If achieved, this milestone will further strengthen Coal India’s position as a global leader in responsible coal production — fueling the country’s power needs while adapting to an evolving energy landscape.

(Economy India)