New Delhi: India’s coal production crossed the 1,000 million tonnes (MT) mark in March 2025, a significant milestone backed by sustained policy reforms and rising power demand. According to a recent report by CareEdge, the share of domestic coal in total consumption rose from 77.7 per cent to 82.5 per cent, supported by the allocation of 184 coal mines till January 2025.
Improved supply conditions and policy support have also led to a steady decline in coal prices, a trend expected to continue into FY26. India aims to raise domestic production to 1.15 billion tonnes in FY26, potentially meeting 83 per cent of its total coal requirement and strengthening its path toward greater energy self-reliance.
According to Tanvi Shah, Senior Director, CareEdge Advisory, coal production in India increased significantly, thereby leading to increased power generation from coal-fired thermal power plants. However, there are various factors like state government policies, geographical location, power generation source and associated grid infrastructure, and weather conditions which impact electricity reliability, outages and power affordability.
She stressed during a conversation with ETV Bharat that India now meets over 82 per cent of its coal demand through domestic production. This growing reliance on local coal has helped lower generation costs for coal-based power plants. However, these savings may not translate into lower electricity bills for consumers, as other factors come into play like transmission and distribution losses, wheeling charges, government subsidies and other charges.
As India aims to hit 1.15 billion tonnes of coal output in FY26 government is also ensuring that increased coal reliance does not compromise long-term sustainability. Tanvi stressed that one of the most important steps towards sustainability in coal mining is the restoration of mined land.
