Several key subsidiaries of Coal India Limited (CIL) have reported a decline in coal production for the financial year 2025–26, raising concerns over supply targets and operational challenges in the sector. The drop in output comes despite sustained demand for coal across power and industrial segments.
According to provisional data, multiple arms of Coal India witnessed lower production due to a combination of factors including adverse weather conditions, land acquisition hurdles, logistical constraints, and delays in project clearances. These issues impacted mining operations and disrupted planned output growth during the year.
Industry observers note that while some subsidiaries managed to maintain stable performance, the overall dip in production from major units weighed on the company’s aggregate output. The decline could have implications for coal supply to thermal power plants, particularly during periods of peak demand.
Coal India has indicated that it is taking corrective measures to address bottlenecks, including faster project approvals, enhanced evacuation infrastructure, and improved mine planning. The company remains focused on meeting long-term production targets and ensuring consistent supply to key sectors.
The development underscores the ongoing challenges in India’s coal mining sector, even as demand remains strong and energy security continues to be a priority.