India’s Coal Production Hits 86.24 Million Tonnes in May 2025; 3.4% Growth Ensures Steady Supply to Key Industries

New Delhi, June 3 : India’s coal sector continued its upward trajectory with total production in May 2025 reaching 86.24 million tonnes (MT), marking a 3.4% increase compared to 83.96 MT recorded in May 2024, according to a statement issued by the Ministry of Coal on Monday.

The significant rise in both coal production and dispatch is ensuring a reliable and steady supply to critical industries such as power, steel, and cement, which are highly dependent on this key fossil fuel.

Captive and commercial mines played a major role in this growth, contributing 16.432 MT in May 2025—a robust increase of 24.57% over the same month last year. Coal dispatch also witnessed an impressive 13.8% jump, reaching 17.5 MT in May.

As of May 31, the coal stock held by mining companies stood at 122.69 MT, showing a strong year-on-year increase of 29.18% from 94.98 MT in 2024. This stockpile reflects the enhanced production capability and the sector’s preparedness to meet rising industrial demand.

The Ministry highlighted recent milestones in regulatory approvals, including the granting of Stage-I and Stage-II Forest Clearances and Mining Lease executions for new coal blocks. Further strengthening India’s coal infrastructure, vesting orders for six coal blocks—located across Chhattisgarh, Maharashtra, Odisha, Jharkhand, and Madhya Pradesh—were signed on May 29 under the 11th tranche of commercial coal auction.

Government initiatives such as Commercial Coal Mining and Mission Coking Coal are credited with the surge in domestic production and reduced dependency on imports. Reflecting this, India’s coal imports dropped by 7.9% to 243.62 MT during the financial year 2024–25, from 264.53 MT the previous year. This reduction translated into substantial foreign exchange savings of $7.93 billion (Rs 60,681.67 crore).

The continued momentum in coal production aligns with India’s strategic objective to bolster energy security, drive industrial growth, and support the transition towards self-reliance in key resources.