India's captive and commercial coal mining sector recorded a 14.9% year-on-year increase in production in June 2026, reaching 17.88 Million Tonnes (MT), according to an official statement from the Ministry of Coal. Coal dispatch during the month stood at 18.55 MT, reflecting sustained growth in the sector.
Quarterly performance shows steady growth
During the first quarter of fiscal year 2026-27 (April to June 2026), cumulative coal production from captive and commercial mines increased by 5.35% compared to the same period in the previous financial year. Coal dispatch for the quarter also rose by 1.70% year-on-year. The ministry attributed this performance to continued improvements in mine operations, capacity utilization, and production planning.
The captive and commercial coal mining sector has grown at a compound annual growth rate (CAGR) of approximately 10.7% between FY 2024-25 and FY 2026-27, indicating a steady upward trend in domestic coal production.
Three new mines commence production
During the quarter, three coal mines — Urtan, Dhirauli, and Bikram — began coal production. According to the ministry, these mines have a combined Peak Rated Capacity (PRC) of 7.51 MTPA. The operationalization of these mines is expected to enhance domestic coal availability, strengthen supply security, and support the growing energy and industrial sector requirements, thereby contributing to economic growth.
Coking coal mine Urtan to boost steel sector
The commencement of production from the Urtan coking coal block is particularly significant, as coking coal is a key raw material for steel production. The mine is expected to strengthen the availability of domestic coking coal for the steel sector and support efforts to reduce reliance on imports.
Policy initiatives drive sector progress
The Ministry of Coal attributes the sector's progress to policy initiatives, regulatory facilitation, and sustained engagement with stakeholders. These efforts have enabled timely operational clearances, improved capacity utilization, and strengthened coal production and dispatch from captive and commercial coal mines.
