Captive, commercial coal output rises 14.9% in June; quarterly growth more measured at 5.35%

New Delhi: Coal production from India's captive and commercial mines rose 14.9 percent year-on-year in June 2026, but growth across the full first quarter of FY 2026-27 was more measured at 5.35 percent, with coal dispatch during the quarter increasing at less than half the pace of production, according to data released by the Ministry of Coal on Thursday.

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June output outpaces the quarterly trend

Production from captive and commercial mines stood at 17.88 Million Tonnes (MT) in June 2026, up from 15.56 MT in June 2025, an increase of 2.32 MT, or 14.9 percent. Coal dispatch for the month reached 18.55 MT. June's production growth rate ran at nearly three times the quarter's cumulative rate.

Quarter shows production running ahead of despatch

For the April–June 2026 quarter, cumulative coal production grew 5.35 percent over the corresponding period a year earlier, while dispatch rose 1.70 percent year-on-year, leaving offtake growth trailing production growth by a wide margin over the three-month period.

The ministry also cited a longer-run trend, stating that Q1 production from captive and commercial mines had grown at a compound annual growth rate of approximately 10.7 percent between FY 2024-25 and FY 2026-27. "The captive and commercial coal mining sector continued to demonstrate sustained growth during Q1 FY 2026–27," the Ministry of Coal said in its statement.

Three new mines add 7.51 MTPA of capacity

During the quarter, three coal mines — Urtan, Dhirauli and Bikram — commenced production, together carrying a combined Peak Rated Capacity (PRC) of 7.51 MTPA. "The operationalisation of these mines is expected to enhance domestic coal availability, strengthen supply security and support the growing requirements of the country's energy and industrial sectors, thereby contributing to economic growth," the ministry said.

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Coking coal from Urtan strategically significant

The ministry singled out the Urtan block, which produces coking coal, a key input for steelmaking and one of India's main import dependencies. "The commencement of production from Urtan, a coking coal block, is particularly important as coking coal is a key raw material for steel production," the Ministry said. It added, "The mine is expected to strengthen the availability of domestic coking coal for the steel sector and support efforts to reduce reliance on imports."

The Ministry of Coal attributed the sector's performance to policy initiatives, regulatory facilitation and sustained engagement with stakeholders, which it said had enabled timely operational clearances, improved capacity utilisation and strengthened production and dispatch from captive and commercial mines.

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