Coal India production rises 8% to 50.36 MT in July

State-owned CIL on Saturday said its production grew 8.4 per cent to 50.36 million tonnes (MT) in July. Coal India Ltd (CIL) accounts for over 80 per cent of domestic coal output.

Despite challenges posed by the rains, the company recorded healthy growth in coal production. Simultaneously, it has sustained strong momentum in coal supplies through a demand-responsive inventory optimisation strategy, enabling it to maintain a comfortable balance between production and supplies. “Coal India Ltd recorded a robust operational performance in July 26-27, registering an 8.44 per cent growth in coal production,” it said in a statement. Coal supplies also increased 18.38 per cent to 64.19 MT during July, over the year-ago period.

“Coal supplied in July FY27 marks the highest-ever coal offtake for the month in any financial year. The previous highest July supply stood at 60.5 MT, achieved in FY 24-25,” the statement said.

The strong operational momentum follows another record performance in June FY27, when CIL supplied 65.95 MT of coal, its highest-ever supply for June.

Consequently, the company’s cumulative coal supplies during the first four months of FY27 (April-July) rose 6.9 per cent at 262.04 MT, the highest-ever volume supplied for the corresponding period.

The previous record was 259.4 MT, achieved during April-July 2024-25.

Coal supplies to the power sector — the company’s largest consumer segment — also grew 18 per cent, increasing to 49.77 MT in July from 42.35 MT in the corresponding month of the previous year.

Supplies to the non-regulated sector also registered healthy growth, rising 21 per cent to 14.42 MT from 11.89 MT during the same period. CIL also recorded a significant improvement in overburden (OB) removal, a key mining activity that supports sustained coal production.

During July, overburden removal increased 21.11 per cent to 120.35 million cubic meters (MCuM) from 99.36 MCuM in July FY26.

On a cumulative basis, overburden removal during April-July FY27 stood at 625.02 MCuM, registering a growth of 2.85 per cent over the corresponding period of the previous fiscal year.

Overburden removal is a critical precursor to opencast coal mining.

It involves the excavation of soil, rock and other materials overlying the coal seam to expose coal reserves for extraction.

Timely and adequate removal of overburden ensures uninterrupted access to coal seams, facilitating sustained production.

CIL is aiming coal production of 815 MT and supply of 850 MT in the ongoing financial year.