India’s coal sector has achieved a major milestone with captive and commercial coal blocks recording a combined production of 15.57 million tonnes (MT) in June 2025, reflecting the Centre’s continued push for coal sector reforms, import substitution, and energy security. This performance marks a substantial growth over last year, driven by enhanced operational efficiencies and expedited mine development initiatives.
Key Highlights of June Production Performance
According to the Ministry of Coal data released on Tuesday:
- Total coal production from captive and commercial mines reached 15.57 MT in June 2025, representing a 29% growth over June 2024, when production stood at approximately 12.1 MT.
- Captive mines alone contributed over 10.2 MT, while commercial mines accounted for 5.37 MT, driven by new operationalised mines under the commercial auction regime.
- The combined output forms a crucial part of India’s overall coal production, supplementing state-owned Coal India Ltd (CIL) to ensure adequate coal availability for thermal power plants and industrial consumers.
Month-wise Captive and Commercial Mine Production Trend FY25
| Month | Captive Mines Production (MT) | Commercial Mines Production (MT) | Total Production (MT) |
|---|---|---|---|
| April | 9.78 | 4.23 | 14.01 |
| May | 10.01 | 4.89 | 14.90 |
| June | 10.20 | 5.37 | 15.57 |
| Q1 Total | 29.99 | 14.49 | 44.48 |
(Compiled from Ministry of Coal’s Monthly Performance Report)
Growth Drivers for June Production Surge
- Operationalisation of New Commercial Mines: Multiple mines auctioned in tranche-1 and tranche-2 have commenced partial or full-scale operations, adding incremental production.
- Improved Evacuation Infrastructure: Rail sidings, mechanised loading systems, and first-mile connectivity projects have reduced dispatch bottlenecks.
- Enhanced Monitoring: The Ministry’s Project Monitoring Unit, in coordination with state governments, ensured faster clearances for mining leases and environmental approvals.
- Private Sector Efficiency: Captive mine operators, mainly from steel, cement, and aluminium sectors, optimised mining operations to meet peak monsoon demands.
Top Performing Captive and Commercial Mines in June
| Mine Name | Operator | Production (MT) |
|---|---|---|
| Talabira II & III | Neyveli Lignite Corporation | 1.85 |
| Gare Palma IV/1 | Jindal Power | 1.62 |
| Gare Palma IV/7 | Hindalco Industries | 1.49 |
| Chotia | Bharat Aluminium Company | 0.73 |
| Seregarha | NTPC | 0.68 |
| Gare Palma IV/3 | Aurobindo Realty & Infra | 0.61 |
| Utkal D | NALCO | 0.59 |
Commercial Coal Mining Policy Impact
The government’s commercial coal mining policy, launched in 2020, allowed private companies to mine and sell coal in the open market without end-use restrictions for the first time since nationalisation. So far:
- 91 coal blocks have been successfully auctioned under five tranches, with peak rated capacity exceeding 200 MT per annum.
- 19 commercial coal mines have commenced production contributing to the June 2025 output, a significant jump from 9 mines operational in June 2024.
- The policy aims to reduce India’s thermal coal import dependence, which stood at 237 MT in FY24, by substituting imported coal with domestic supply.
Industry Reactions
Coal Producers Association of India (CPAI) welcomed the rising production figures. President Rakesh Singh said:
“The ramp-up in captive and commercial mine production is crucial to meeting power sector demand, especially as peak monsoon season challenges transportation. Private participation has improved productivity and innovation in mine management.”
Power Sector Demand Scenario
India’s power demand continues to rise with daily peak touching 242 GW in June 2025, driven by record heatwaves and industrial recovery. Thermal power plants remain dependent on coal for over 73% of electricity generation, making consistent coal availability essential to avoid summer outages.
Government’s Future Roadmap
Union Coal Minister Prahlad Joshi has set a target to achieve:
- 1.5 billion tonnes total domestic coal production by FY30, with at least 250 MT contributed by commercial coal blocks.
- Faster mine operationalisation, with commercial mine development timelines reduced to 2-3 years from auction compared to 4-5 years earlier.
- Promotion of coal gasification and clean coal technologies to align with India’s net zero 2070 commitments while ensuring energy security.
Environmental Compliance and Sustainable Mining
The Ministry emphasised strict adherence to sustainable mining standards:
- Mandating progressive mine closure plans and afforestation targets.
- Implementing mine water utilisation projects for irrigation in nearby villages.
- Introducing real-time pollution monitoring systems in large mines to minimise environmental impact.
Comparison with Coal India Ltd Performance
While captive and commercial mines produced 15.57 MT in June, Coal India Ltd’s production stood at approximately 58 MT, maintaining its share as India’s primary coal producer. However, the rising captive and commercial contribution is expected to diversify supply sources and enhance market competition.
Expert Opinions on Sectoral Growth
Energy economist Dr. Swati Rajan noted:
“Private captive and commercial mine production growth reflects policy success in deregulating the coal sector. The challenge remains in ensuring that new production displaces imports effectively while meeting environmental safeguards.”
Challenges Ahead
Despite positive figures, industry stakeholders highlighted:
- Land acquisition delays in certain auctioned blocks, especially in mineral-rich tribal regions.
- Transport infrastructure constraints in eastern coal-bearing states.
- Regulatory hurdles in forest clearance approvals, slowing ramp-up of peak rated capacities.
Outlook for FY25
With monsoon onset likely to hamper mine productivity temporarily, the Ministry is focused on:
- Clearing logistical bottlenecks through rail connectivity expansion under PM Gati Shakti.
- Ensuring adequate coal stockpiles at thermal power plants to avoid short-term supply shocks.
Conclusion
The record production of 15.57 million tonnes from captive and commercial coal mines in June highlights India’s commitment to strengthening its domestic energy security through policy reforms and private sector participation. As global fuel markets remain volatile, these achievements not only reduce import bills but also ensure uninterrupted power supply for the world’s fastest-growing major economy.
Disclaimer: This news report is based on Ministry of Coal data releases, industry statements, and sector analysis. Readers are advised to consult official government notifications for exact project-wise production figures and policy updates.
