India's Coal Production Surges: What This Means for the Economy

Significant Growth in Coal Production

New Delhi: In May 2025, India's coal production reached an impressive 86.24 million tonnes (MT), reflecting a 3.4% increase from the 83.96 MT produced in May of the previous year, as reported by the Coal Ministry on Monday.

The output from both captive and commercial mines showed remarkable performance, with a total of 16.432 million tonnes produced in May, marking a substantial growth of 24.57% compared to May 2024.

Coal dispatch also saw a significant rise, climbing by 13.8% to 17.5 million tonnes in May, surpassing the figures from the same month last year. This growth in production and dispatch is crucial for ensuring a reliable coal supply to key sectors such as power generation, steel manufacturing, and cement production, according to the official statement.

As of May 31, coal stocks held by companies experienced a notable increase of 29.18%, reaching 122.69 MT, compared to 94.98 MT during the same period last year. This surge underscores the substantial rise in coal production nationwide.

Furthermore, in May, three significant clearances were secured, including Stage-I and Stage-II Forest Clearances and the execution of Mining Leases for various coal blocks.

On May 29, vesting orders for six coal blocks were finalized, located in Chhattisgarh (2), Maharashtra, Odisha, Jharkhand, and Madhya Pradesh (one each), all part of the 11th tranche of auction.

The government has introduced several initiatives, such as Commercial Coal Mining and Mission Coking Coal, aimed at boosting domestic coal production and minimizing imports.

These measures have contributed to a 7.9% decrease in India's coal imports, totaling 243.62 million tonnes during the financial year 2024-25, thanks to the rise in domestic production. This shift has resulted in significant foreign exchange savings amounting to $7.93 billion (approximately Rs 60,681.67 crore) in the import bill, according to official data.

In the previous financial year, coal imports stood at 264.53 MT.