Friday, 11 Jul, 2025
As per provisional data, total coal production for FY 2024–25 reached 1,047.57 million tonnes (MT), up from 997.83 MT in the previous year, a year-on-year growth of 4.99 percent.Image Source: IANS
In a major milestone for India’s energy sector, the country has surpassed the one billion tonne (BT) mark in both coal production and dispatch during the financial year 2024–25.
In a landmark achievement that underscores India’s growing energy self-reliance, the country has surpassed the 1 billion metric tonne mark in both coal production and dispatch during the last financial year. This historic milestone not only bolsters the nation’s energy security but also ensures a steady, affordable, and reliable power supply, an essential component for sustaining economic growth.
Behind this success lies the tireless effort of nearly 500,000 workers directly engaged in coal mining, along with countless others contributing indirectly to the sector. However, the feat is far from an overnight development. It is the result of a decade-long push for structural reforms in a sector once plagued by inefficiency and shortfalls.
In 2014, India’s coal industry was grappling with acute production deficits amid surging demand. Between 2009 and 2014, coal and lignite output grew at a sluggish pace from 566 million tonnes to just 610 million tonnes, reflecting a compounded annual growth rate of only 1.89 percent.
A turning point came in 2015, when the Supreme Court annulled 204 coal block allocations, paving the way for a comprehensive overhaul of the sector. In 2020, the launch of commercial coal mining marked a significant departure from past practices ushering in transparency, open competition, and private sector participation.
Fast forward to March 2025, and the transformation is evident. Around 150 coal mines have been successfully auctioned over 11 completed rounds of commercial bidding, with the 12th round currently underway. Since the rollout of commercial coal mining in June 2020, India has seen a staggering 70% growth in coal production.
State governments, too, have reaped substantial financial benefits, collecting nearly ₹2.5 lakh crore in auction premiums and royalties. As India powers ahead on the back of coal, the once-ailing sector now stands as a symbol of robust policy reform, economic foresight, and effective governance.
In a major milestone for India’s energy sector, the country has surpassed the one billion tonne (BT) mark in both coal production and dispatch during the financial year 2024–25. This significant achievement highlights the Ministry of Coal’s sustained efforts to boost production, streamline dispatch logistics, and reinforce national energy security.
As per provisional data, total coal production for FY 2024–25 reached 1,047.57 million tonnes (MT), up from 997.83 MT in the previous year, a year-on-year growth of 4.99 percent. Notably, coal output from commercial, captive, and other private entities stood at 197.50 MT, marking an impressive 28.11 percent increase from 154.16 MT in FY 2023–24.
Source: Ministry of Coal
Coal dispatches also mirrored this growth trend, with cumulative dispatch figures touching 1,024.99 MT, 5.34 percent higher than the 973.01 MT recorded last year. Dispatches from commercial, captive, and other operators surged to 196.83 MT, a jump of 31.39 percent compared to 149.81 MT in the previous fiscal year.
At the same time, India saw a notable drop in coal imports. During FY 2024–25, total coal imports fell by 7.9 percent to 243.62 MT, down from 264.53 MT in FY 2023–24. This decline helped the country save approximately $7.93 billion (₹60,681.67 crore) in foreign exchange. Imports in the non-regulated sectors, excluding power, dropped even further, showing an 8.95% reduction year-on-year.
Interestingly, despite a 3.04 percent increase in coal-based power generation, imports of coal for blending by thermal power plants fell sharply by 41.4 percent, underlining India’s commitment to reducing reliance on imported coal and strengthening domestic self-sufficiency.
Several government-led initiatives, such as the Commercial Coal Mining scheme and Mission Coking Coal, have played a key role in these developments. These strategic reforms have not only boosted domestic coal output, up by 5 percent compared to FY 2023–24 but have also contributed to a more resilient and secure energy supply system.
Coal continues to serve as a cornerstone of India’s industrial economy, fueling critical sectors like power, steel, and cement. However, challenges persist in meeting the demand for specific coal grades, particularly coking and high-grade thermal coal, which remain in limited supply domestically. Imports are still essential to bridge this gap, especially for steel production.
To address this, the Ministry of Coal is actively pursuing long-term strategies aimed at expanding domestic production capacity and reducing dependence on imports, in line with India’s broader energy security objectives.
