Coal India Aims for 875 MT Production in FY26 Amid Challenges

Coal India Ltd (CIL) aims to achieve or come close to its ambitious 875 million tonne (MT) coal production target for FY26, CMD Sanoj Kumar Jha said on Sunday. The company, which meets over 80% of India’s coal needs, also set a dispatch target of 900 MT for the same period.

Jha, who took charge on November 1, acknowledged that Coal India missed its targets in September and October due to heavy monsoon rains. He added that demand from the power sector has been “very sluggish,” but assured that “we will have more stocks at the end of the year than we had last time.”

October output dropped 9.8% to 56.4 MT, while September production stood at 48.97 MT. Despite these setbacks, Jha remained optimistic. “Today I can’t say we will not meet (the production target). I can’t say we will meet. But we will aspire that we will be able to be there or near there,” he said at the 59th Foundation Day of Hindustan Copper Ltd.

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From an industry standpoint, the target underscores the public sector giant’s commitment to maintaining domestic energy security even as demand dynamics shift. With power generation under pressure and renewable energy expanding, sustaining such volumes will test operational efficiency and logistics.

Jha also revealed that regulations for the proposed coal exchange will be finalised within six months — a move that could reshape India’s coal trading landscape by improving transparency and access for buyers.