Lok Sabha Question No. 467 (STARRED), answered on 2026-03-25
Subject: Coal India Limited Production Target
Ministry: COAL
Asked by: Shri Damodar Agrawal, Shri Chandra Prakash Choudhary

## GOVERNMENT OF INDIA MINISTRY OF COAL

## LOK SABHA STARRED QUESTION No. *467 ANSWERED ON 25.03.2026

## COAL INDIA LIMITED PRODUCTION TARGET

## *467. SHRI CHANDRA PRAKASH CHOUDHARY: SHRI DAMODAR AGRAWAL:

Will the Minister of COAL be pleased to state:

- (a) the details of specific strategies implemented to meet the 1.31 billion tonne coal production target set for the Financial Year 2026-27;
- (b) whether Coal India Limited (CIL) is on track to achieve its 1 billion tonne production milestone in the current fiscal year including Jharkhand particularly in Hazaribagh and Ramgarh districts and if so, the details thereof;
- (c) the manner in which the reduction in coal imports for blending has translated into actual cost savings for domestic power consumers;
- (d) whether the 'CoalSETU' window has successfully enabled Non-Regulated Sectors (NRS) to access coal for diverse industrial uses and exports without distorting supply to the power sector especially in Jharkhand particularly in Hazaribagh and Ramgarh districts and if so, the details thereof; and
- (e) whether the Government has undertaken measures to strengthen coal supply, logistics and industrial usage in Odisha and if so, the details thereof?

## ANSWER

## MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a) to (e): A statement is laid on the table of the House .

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (A)  TO  (E)  OF  LOK  SABHA STARRED  QUESTION  NO.  *467  FOR  ANSWER  ON  25-03-2026  ASKED  BY  SHRI CHANDRA PRAKASH CHOUDHARY AND SHRI DAMODAR AGRAWAL REGARDING COAL INDIA LIMITED PRODUCTION TARGET .

(a)  &  (b): The coal production target of 1.31 billion tonnes for FY 2026-27 was set in 2024. However, coal  production  is  a  function  of  coal  demand  and,  therefore,  actual  coal  production  is dependent upon the demand from power sector as well as from the NRS (non-regulated) sector.

To ensure that there is enough availability of coal for all sectors, the Government has put in place a robust and forward-looking strategy. This includes systematic capacity expansion of existing mines, expedited  operationalisation  of  new  projects,  deployment  of  advanced  and  high-capacity  mining technologies, and implementation of First Mile Connectivity (FMC) projects to ensure seamless and efficient  coal  evacuation.  In  addition,  coordinated  efforts  with  the  Ministry  of  Railways  for strengthening  rail  infrastructure  and  continuous  monitoring  of  project  milestones  are  being undertaken to ensure readiness for meeting future demand.

Coal India Limited (CIL) is expected to achieve coal production of about 770 MT this financial year. It is pertinent to highlight that coal stock levels across the country, including at pitheads and thermal power plants, remain at comfortable and strategically adequate levels. Currently, coal availability in the power plants is around 53 MT which is sufficient for 23 days. Further, there is stock of around 156 MT at the pitheads of mines apart from about 12 MT of coal in transit.

In Jharkhand, particularly in Hazaribagh and Ramgarh districts, production is being undertaken in accordance with the revised and demand-linked production plans. The coal supply chain remains fully streamlined, with adequate inventories maintained to meet current and emergent requirements.

Coal  companies,  including  CIL,  maintain  a  high  state  of  operational  readiness  and  possess  the necessary capacity, infrastructure, and logistical support to swiftly scale up production and dispatches at  short notice.  This ensures that any surge in demand can be effectively met without disruption, thereby safeguarding uninterrupted coal supply to all consuming sectors of the economy.

(c): During FY 2024-25, total coal imported in the country was 243.62 Million Tonnes (MT) as compared to 264.53 MT in FY 2023-24 leading to forex saving of around ₹60,681.67 crores. Apart from price of imported coal for blending purpose, cost of generation of electricity is also dependent upon freight charges. Further, different generating companies blend different quantities of imported coal which is driven by factors such as plant design, relative landed price of imported coal vis-a-vis domestic coal, demand of power etc.

Coal Imported by Domestic Coal Based (DCB) thermal power plants in the country during last three years are as below: -

| Period                      | Imported receipt in DCB plants for blending (in Million Tonnes)   | %Change in Receipt of Imported Coal in DCB plants   |
|-----------------------------|-------------------------------------------------------------------|-----------------------------------------------------|
| 35.1                        | -                                                                 | 2022-23                                             |
| 23.9                        | -32%                                                              | 2023-24                                             |
| 14.0                        | -41%                                                              | 2024-25                                             |
| 2024-25 (Apr 2024-Jan 2025) | -                                                                 | 12.7                                                |
| 2025-26 (Apr 2025-Jan 2026) | 6.1 -52%                                                          |                                                     |

(d): The Policy on Auction of Coal Linkage for Seamless, Efficient & Transparent Utilisation (CoalSETU) by creation of new window named "CoalSETU window" in the Non-Regulated Sector (NRS) Linkage Policy was approved on 12.12.2025. The non-coking coal linkage obtained under the 'CoalSETU window' can be for own consumption without end-use restrictions, for export of coal, or for any other purpose (including coal washing) except resale in the country.

This  policy  has  been  approved  for  grant  of  long-term  coal  linkage  to  NRS  sector  and  it  is  not envisaged to distort supply to the power sector in any part of the country including in Hazaribagh, Ramgarh or any other district of Jharkhand.

(e): In  order  to decongest  road  infrastructure,  increase  loading  capacity,  and  to  support production growth from mines of Mahanadi Coalfields Limited (MCL) in Odisha, the Government has taken measures to strengthen coal evacuation infrastructure via 'First Mile Connectivity (FMC)' projects and dedicated railway lines.

Construction of two major rail lines have been undertaken in the state of Odisha - (i) Angul-Balram rail line (Single line) in Talcher Coalfields and (ii) Jharsurguda-Barpali-Sardega (Double Line) with RoB at Jharsuguda and capacity enhancement of Jharsuguda yard in IB/Basundhara Coalfields. Both the lines are operational.

19 FMC projects have been planned (expected to be operational by FY 2029-30) with a combined capacity  of  336.5  Million  Tonnes  Year  (MTY).  These  FMC  projects  include  surface  conveyors, mechanised CHP with rapid silo loading and pre-weigh wagon loading.

With  planned  production,  improved  rail  infrastructure,  and  coordination  with  railways  and  state authorities, coal supply to industries, including those in Odisha, is expected to remain adequate.

****