New Delhi, October 3, 2026: State-owned Coal India Ltd (CIL) increased coal supplies by 12.5% year-on-year to 61.20 million tonnes (MT) in September 2026, as rising electricity demand pushed thermal power plants to consume more coal. The increase comes as India’s power sector faces higher demand and tighter fuel inventories.
Power Sector Receives Higher Coal Supplies
Coal India’s supplies to the power sector rose 10.63% to 48.90 MT in September, compared with 44.20 MT during the same month last year.
Supplies to the non-regulated sector also increased sharply, registering 19.41% year-on-year growth during September.
The increase in dispatches comes at a time when coal-based power generation has remained elevated amid stronger electricity consumption.
Coal Production Also Increases
CIL’s coal production rose 9.18% to 53.50 MT in September, compared with 49 MT in September of the previous financial year.
The company had faced weather-related operational challenges during the monsoon, but improving conditions helped mining and transportation operations recover. The Ministry of Coal reported that CIL’s average daily production and power-sector dispatches increased significantly as rainfall receded during September.
Q2 Supplies Rise More Than 12%
The stronger September performance also lifted Coal India’s overall second-quarter numbers.
During Q2 FY2026-27, CIL’s total coal supplies increased 12.04% to 186.04 MT. Supplies to the power sector rose around 11% to 148.20 MT, compared with 133.50 MT in the corresponding quarter last year.
Coal production during the quarter increased 3.81% to 151.37 MT, from 145.82 MT a year earlier.
Higher dispatches also helped CIL liquidate approximately 63 MT of pithead coal stocks during the first six months of FY2026-27.
Rising Electricity Demand Keeps Pressure on Coal Supplies
India experienced unusually strong power demand in September. Reuters reported that the country’s power shortages reached their highest level in more than three years despite elevated coal-fired generation.
Coal inventories at several thermal power plants also came under pressure during the month, adding urgency to efforts to maintain regular fuel supplies.
Production Expected to Improve After Monsoon
With the monsoon season receding, Coal India expects mining and dispatch operations to gain further momentum.
The company has been assigned a FY2026-27 production target of 815 MT and a supply target of 850 MT. CIL has indicated that improving mining conditions should support higher production and supplies during the remainder of the financial year.
The September figures underline Coal India’s continuing role in India’s power-security system, particularly during periods when electricity demand rises sharply and thermal power plants require additional fuel.