State-run Coal India (CIL) reported an 8.5 per cent year-on-year decline in coal production for June 2025, clocking 57.8 million tonne (MTs) compared to 63.1 MTs in the same month last year. The drop comes even as the government continues to push for increased domestic output to curb reliance on coal imports.
All eight subsidiaries of Coal India witnessed a production decline in June, ranging from 0.8 per cent to a steep 29.8 per cent. In one case, output was down by 100 per cent year-on-year, contributing to the overall slump in monthly production.
For the April–June 2025 quarter, Coal India’s cumulative production stood at 183.3 MT, registering a 3.2 per cent drop from 189.3 MT in the corresponding period last year. The company described the performance as a “mixed start” to the fiscal year across its mining operations in a regulatory filing. However, it did not specify any reasons for the production shortfall.
Coal offtake, which indicates the volume of coal dispatched to consumers from pitheads, also slipped 7.4 per cent year-on-year to 60.4 MT in June, down from 65.2 MT in June 2024.
The decline comes at a time when India is attempting to scale up domestic coal production to meet rising energy demand and reduce dependence on costly coal imports, especially for thermal power generation. Coal remains the backbone of India’s energy mix, accounting for over 70 per cent of electricity generation.
Industry analysts said that unless production picks up steadily in the coming months, the shortfall could lead to pressure on inventories during the peak demand period later this year.