Steady Growth in India’s Coal Production and Dispatch in May 2025 Reflects Sectoral Strength

India’s coal sector continued its upward trajectory in May 2025, showing consistent growth in production and dispatch compared to the same period last year. The surge reflects the Ministry of Coal’s persistent efforts to ensure reliable coal supply, operational efficiency, and long-term sustainability in the sector.

Production Trends

During May 2025, India’s total coal production reached 86.24 million tonnes (MT) (Provisional), an increase from 83.96 MT recorded in May 2024. This growth is indicative of the sector’s enhanced operational capacity and the government’s focus on expanding domestic production.

A major contributor to this growth was the rise in output from captive and commercial mines, which produced 16.93 MT in May 2025, up from 13.83 MT during the same period last year. This 22.4% increase underlines the growing role of private sector and commercial entities in strengthening India’s coal output.

Coal Stockpile and Dispatch

As of May 31, 2025, coal stocks held by coal companies reached 122.69 MT, marking a 29.18% rise from 94.98 MT during the same time in 2024. This notable increase in coal inventory reflects both improved production planning and an emphasis on maintaining supply buffers to meet peak power demands.

The consistent rise in dispatch levels also reinforces supply chain efficiency, ensuring that both thermal power plants and industrial consumers receive timely coal deliveries.

Policy Commitment and Sectoral Outlook

The Ministry of Coal continues to prioritize:

• Sustainable growth through environmentally conscious mining practices

• Improved availability of domestic coal to reduce dependence on imports

• Capacity building for commercial and captive mining operations

• Enhancement of coal infrastructure and logistics

This strategic approach is aimed at not only meeting current energy demands but also preparing the sector for future growth in power consumption and industrial needs.