India’s Coal Sector Records Growth in April 2025

India’s coal sector has begun FY 2025–26 on a strong note, with both production and dispatch registering positive growth in April 2025. The consistent increase in coal output highlights the strategic role coal continues to play in India’s energy security and industrial development. With a focus on reducing import dependency and enhancing domestic availability, this performance is significant for India’s energy ecosystem and self-reliance goals.

Why in the news?

India’s coal production rose by 3.63% in April 2025, reaching 81.57 million tonnes (MT), as per data released by the Ministry of Coal on May 1, 2025. This growth reflects the robust performance of both public and captive coal mining entities.

Coal Production Performance (April 2025)

• Total production: 81.57 MT (Provisional) – 3.63% increase over April 2024 (78.71 MT).
• Captive/Other Mines: 14.51 MT, compared to 11.46 MT in April 2024 – showing a 26.6% jump.

Coal Dispatch (April 2025)

• Total coal dispatch reached 86.64 MT, up from 85.11 MT in April 2024.

Coal Stock Status (as on 30 April 2025)

• Total stock with coal companies: 125.76 MT, up from 102.41 MT last year.
• Coal India Limited (CIL) stock: 105 MT, showing a 22.10% annual growth over 86.60 MT in April 2024.

Significance

• Ensures fuel availability for power generation and industrial use.
• Reduces coal import dependency, saving valuable foreign exchange.
• Supports Make in India and Atmanirbhar Bharat missions.

Background

• India is the world’s second-largest producer of coal.
• Coal continues to be a dominant source of energy, powering over 70% of electricity generation.
• Captive coal mines were allowed post-2015 reforms to ensure supply to key industries like power, steel, and cement.