New Delhi: India has set an ambitious all-India raw coal production target of 1,157 million tonnes for 2025-26, with Coal India Ltd. (CIL) expected to contribute 875 MT, Singareni Collieries Company Ltd. (SCCL) 72 MT and the remaining 210 MT projected from captive, commercial and other producers.
The Ministry of Coal has also outlined a long-term domestic coal output goal of 1.5 billion tonnes by FY30, underscoring the government’s plan to strengthen energy security through expanded production. This was shared by Union Coal and Mines Minister G Kishan Reddy in a written reply to a Lok Sabha question.
Coal-producing PSUs continue to operate under stringent environmental norms, securing mandatory environment clearances before launching any new or expansion projects. These clearances rely on comprehensive environmental impact assessments and environmental management plans, both of which govern mine operations, the House was informed.
The minister said land reclamation and mine closure activities are carried out in line with approved plans, while coal companies increasingly adopt sustainable technologies, strict air-quality protocols, mine-water reuse mechanisms, large-scale plantation efforts and enhanced monitoring via the PARIVESH portal, in coordination with central and state pollution control authorities.
The ministry is also pushing cleaner coal technologies through advanced beneficiation systems, with all-new washeries designed for zero effluent discharge and older ones being modernized to reduce operational emissions.
On coal gasification, the government’s ₹8,500-crore assistance scheme — approved in January 2024 — has so far selected seven projects that are expected to consume nearly 11.8 MT of coal annually once operational. Meanwhile, coal-block auctions continue to gain traction, with 133 mines awarded over 12 rounds in five years, representing a peak rated capacity of 276 MTPA. These mines are projected to generate annual revenues of ₹38,710 crore, draw capital investments of ₹41,407 crore and create more than 3.7 lakh jobs once they begin operations.
In parallel, Coal India is reviving discontinued underground mines through a revenue-sharing model that offers mine redevelopment opportunities to private mine developers and operators. A total of 32 abandoned mines have been identified, with Letters of Acceptance issued for 28 mines totalling 39.28 MTPA of capacity, while four are under re-tendering.
Coal production has already begun at two mines — BCCL’s PB Project and ECL’s Gopinathpur Project — during FY 2025-26, marking early progress in the initiative to unlock legacy resources.