Coal behemoth Coal India’s total coal production for the last financial year witnessed a 1.7 per cent year-on-year fall at 768.1 million tonnes (mt), missing the annual production target by a wide margin.
The state-run mining giant’s production target for FY26 stood at 875 mt. In FY25, its production stood at 781.1 mt.
Among the company’s seven coal-producing subsidiaries, four subsidiaries witnessed a fall in their productions for the last financial year. Bharat Coking Coal (BCCL), Central Coalfields (CCL), Western Coalfields (WCL) and Mahanadi Coalfields Ltd (MCL) registered a production decline of 12.3 per cent, 6.1 per cent, 8.8 per cent and 3 per cent, y-o-y, respectively, according to a stock exchange filing on Wednesday.
While BCCL is predominantly underground mining, WCL and CCL operate open mines. Major rains in Jharkhand and Maharashtra affected production for BCCL, CCL and WCL, Coal India sources told businessline.
Coal offtake for the company also saw a decline of 2.4 per cent year-on-year at 744.8 mt in FY26 compared to 763 mt in FY25. In March this year, the offtake rose 69.5 mt, posting a marginal growth of 0.7 per cent.
E-auction
Coal India on Wednesday said its e-auction price of coal increased by 45 per cent over notified prices in March. Quantity offered during the month stood at 32.53 mt, while quantity allocated was 13.32 mt. The quantity of coal allocated through the e-auction increased 41 per cent during the month.
According to mjunction, India’s largest B2B e-commerce company, there are clear early signs of tightening demand–supply conditions and price firming in the country’s coal auction market.
The pressure is being driven by multiple factors–substitution from gas to coal amid LNG disruptions, seasonal build-up in power demand with plants ramping up capacity for summer, and import constraints pushing greater reliance on domestic coal — all of which are first reflected in auction markets.
West Asia crisis
Currently, India is experiencing the ripple effects of the ongoing conflict in West Asia. “Energy stress is most evident in industrial hubs, which are facing fuel shortages and disruptions to the supply of CNG and LPG. Despite persistent efforts to diversify its energy sources, India’s heavy reliance on imported crude oil, natural gas, and LPG leaves it vulnerable to such external shocks,” said Vinaya Varma, MD & CEO, mjunction services.
Varma said in the current energy landscape, India’s coal reserves serve as a strategic backbone for energy security. However, coal’s ability to directly substitute natural gas remains constrained in the short-to-medium term. While coal is effectively displacing gas within the power sector, its adoption as a feedstock for industrial processes — such as fertilizers and chemicals — remains a more distant prospect.