India’s coal production surpasses 1 billion tonne mark in FY25

India has set a milestone in coal production, surpassing one billion tonnes (as of 20 March 2025) in the financial year 2024-25. This achievement comes 11 days ahead of last fiscal year's coal production of 997.83 million tonnes.

The surge in coal production is due mainly to the country’s dependence on coal for electricity generation and the insatiable demand for energy driven by industrial, agricultural, and overall economic growth.

Coal is used to meet nearly 55 per cent India’s energy needs and around 74 per cent of the electricity generated in the country is from coal-based power plants. 

While public sector coal producers like Coal India Ltd (CIL) were the mainstay of India’s coal sector, the government now encourages private participation in coal production, considering the critical role of coal in ensuring and sustaining the country’s energy security.

There are about 350 coal mines in the country, operated by both public and private sector entities, and these mines provide employment to about 5 lakh people.

The record-breaking coal production can be attributed to the government’s strategic inuitiative of opening the sector to private sector through auctioning of coal blocks and policy reforms intended to augment coal production. These spike in domestic coal production and increased availability of coal has helped to significantly reduce imports and save precious foreign exchange.

In the first nine months of the current financial year (April-December 2024-25) India’s coal imports declined by 8.4 per cent year-on-year, helping the country save Rs42,315.7 crore (about $5.43 billion) in foreign exchange.

This milestone is not just about coal production but it also aligns with the Modi government’s vision of ‘Atmanirbhar Bharat’ - to foster self-reliance in the energy sector while ensuring sustainable development.