Coal production in India crosses 1 billion tonne milestone in FY25

India achieved a historic milestone as it crossed one billion tonnes of coal production on March 20 in 2024-25, surpassing last fiscal year’s 997.83 million tonnes (MT).

With the fifth-largest coal reserves and as the second-largest consumer, coal remains crucial, contributing 55 per cent to the national energy mix and fuelling over 74 percent of total power generation.

According to the Ministry of Coal, the coal sector’s success is attributed to the tireless efforts of Coal Public Sector Undertakings (PSUs), private players, and the dedicated workforce of around 5 lakh mine workers across more than 350 coal mines.

“These coal miners, who have defied numerous challenges with unmatched dedication, have played a pivotal role in achieving this historic milestone,” the ministry said in a statement.

India’s coal production reached 1.04 billion tonne (provisional) in 2024-25, compared to 997.83 MT in 2023-24, marking a 4.99 per cent growth.

Production from commercial, captive, and other entities also saw a remarkable surge, reaching 197.50 MT (Provisional)–a 28.11 per cent increase from the previous year’s record of 154.16 MT.

Coal production refers to the extraction of coal from mines.

Coal dispatch has also crossed the one billion tonne milestone, with total dispatch reaching 1024.99 MT (Provisional) in 2024-25, up 5.34 per cent from 973.01 MT in 2023-24.

Dispatch from commercial, captive, and other entities witnessed an even more significant rise, reaching 196.83 MT (Provisional)–a 31.39 per cent increase compared to 149.81 MT in the previous year.

Coal dispatch refers to the process of transporting and distributing that coal to various consumers, including power plants and industrial facilities.

Parallely, the Indian coal sector achieves a notable reduction in imports.

Coal imports fell 8.4 per cent to 183.42 MT in April- December 2024 from 200.19 MT in the same period of 2023-24, saving USD 5.43 billion (Rs 42,315.7 crore) in foreign exchange.

Coal is vital to India’s energy needs, supplying over half of the country’s power. Despite renewable energy growth, coal-based thermal power will remain essential, with its share projected at 55 per cent by 2030 and 27 per cent by 2047.