- Coal output rose 2.3% y-o-y to 100.5 mnt in Feb 2026
- Dispatches grew 6.2% y-o-y to 90.8 mnt, led by power sector demand
India’s coal production rose to 100.51 million tonnes (mnt) in February 2026, up 2.3% y-o-y from 98.25 mnt, supported primarily by higher output from captive and commercial coal mines.
The increase highlights the growing contribution of privately operated mines to India’s coal supply, even as production from state-run producers remained largely flat.
Captive mines drive production gains
Output from captive and commercial coal blocks climbed to 21.94 mnt in February, up 23.5% from 17.77 mnt a year earlier, making them the key driver of overall production growth.
For the financial year to date (April 2025-February 2026), production from this segment reached 190.64 mnt, a 9.7% increase y-o-y, reflecting the continued ramp-up of privately operated mines following the government’s push to open the sector to commercial mining.
Coal India output steady, SCCL declines
Production from Coal India Limited (CIL) remained broadly stable at 74.66 mnt in February, marginally higher than 74.12 mnt recorded a year earlier. However, CIL’s cumulative output for the current fiscal year remains slightly lower. Production during April-February FY26 stood at 683.68 MT, down 1.67% year on year from 695.25 mnt in the same period last year.
In contrast, Singareni Collieries Company Limited (SCCL) recorded a sharp decline in production, with output falling to 3.90 mnt in February from 6.36 mnt a year earlier.
Coal dispatches rise on power demand
Coal dispatches across all producers reached 90.80 mnt in February, up 6.23% y-o-y from 85.47 mnt, indicating steady demand from consuming sectors. The power sector remained the dominant consumer, accounting for more than three quarters of total coal dispatches. Supplies to power plants increased to 71.02 mnt, up 3.95% from February last year.
Dispatches to captive power plants rose 16.5%, while deliveries to the cement sector jumped more than 85%, albeit from a low base. In contrast, coal supplies to steel and sponge iron producers declined, suggesting softer demand from parts of the metals value chain during the month.
FY26 dispatch trends mixed
Despite stronger shipments in February, cumulative coal dispatches during April 2025-February 2026 stood at 924.52 mnt, slightly lower than 930.32 mnt recorded during the same period of the previous fiscal.
Dispatches to the power sector declined about 3% y-o-y over the period, while industrial sectors showed stronger growth. Coal supplies to steel rose nearly 32%, cement increased about 29%, and captive power plants expanded more than 22%.
However, dispatches to the sponge iron sector fell sharply, dropping over 40% y-o-y. Dispatches from captive and other mines increased more than 34% y-o-y in February, accounting for roughly one quarter of total coal supplies during the month. By comparison, dispatches from Coal India remained largely unchanged, while shipments from SCCL declined.
Rail logistics broadly stable
Coal movement across India continued to rely heavily on rail transport. Average daily coal rake loading stood at 330.5 rakes per day in February, broadly unchanged from 332.9 rakes per day a year earlier.
For the power sector, average rake loading stood at 287 rakes per day, slightly lower compared with February last year.
Outlook
Coal production growth in February remained modest overall but underscored a structural shift within the sector. Output from captive and commercial mines is expanding rapidly, increasingly supplementing supply from traditional state-owned producers. At the same time, coal demand continues to be anchored by the power sector, even as consumption patterns across industrial users show diverging trends.
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