Coal Production in India has seen consistent growth due to sustained investments and the adoption of modern mining technologies . In 2022–23 the country’s total coal output stood at 893.19 million tonnes (MT), which grew by 11.65% to reach 997.25 MT in 2023–24 . This upward trend continued in 2024–25 with coal production hitting a record 1,047.69 MT, marking a significant 11.71% growth over the previous year. This increase reflects not only the efficiency of public-sector giants like Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) but also the expanding role of commercial and captive entities .

CIL, the largest contributor to coal production in India, produced 703.20 MT in 2022–23, a 12.94% rise from the previous year . In 2023–24, this increased to 773.64 MT, showing a 10.02% growth. By 2024–25, CIL’s output reached 781.08 MT, a modest 0.94% increase, yet still accounting for a major share of national production. Meanwhile, SCCL, which mainly serves the southern regions, raised its output from 65.02 MT in 2021–22 to 67.14 MT in 2022–23, and then to 70.02 MT in 2023–24, followed by 69.01 MT in 2024–25, a steady 1.45% increase.

Additionally, commercial and captive producers contributed significantly, reaching 197.50 MT in 2024–25, a sharp 28.11% increase from the previous year. Other entities like TISCO, IISCO and DVC also produce coal in smaller quantities, helping diversify the production landscape. When we describe the production of coal in India, it becomes clear that both public and private sectors are driving this growth. Furthermore, to describe the production and distribution of coal in India, one must note that coal is mined in central and eastern states and transported nationwide to support power generation, steel manufacturing and other industrial uses . This growth highlights coal’s continued importance in meeting India’s energy demands .

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What is Coal Production in India?

Coal production in India refers to the extraction, mining, and processing of coal from underground mines and open-cast mines across different regions of the country. India has vast coal reserves, making it one of the largest coal-producing nations globally. Coal is a fossil fuel formed from the remains of prehistoric plants that lived millions of years ago.

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Coal production and offtake for the period of April to May 2024-25 have shown significant growth. These figures reflect the increased efforts in mining and distribution to meet the rising demand for coal. Here are the detailed statistics for coal production and offtake during this period.

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Coal Distribution and Marketing in India

The Marketing Division of Coal India Limited (CIL) oversees the marketing activities for all its subsidiaries. To meet the needs of different regions, CIL has established Regional Sales Offices and Sub-Sales Offices across the country.

Import of Coal

Under the current import policy, consumers can freely import coal based on their commercial needs under an Open General Licence. The steel sector imports coking coal mainly to meet the shortfall in domestic supply and to enhance quality. Other sectors, such as power and cement, as well as coal traders, import non-coking coal. Here are the details of coal and coke imports over the past four years, including the current year.

History of Coal Production in India

Coal mining in India began in the late 18th century under British colonial rule, with the discovery of the Raniganj coalfield in present-day West Bengal. This marked a turning point in India’s industrial development as coal became the backbone of steam engine transportation and railway expansion across the country .

As the Industrial Revolution progressed, the demand for coal increased sharply. The British expanded coal mining into regions rich in reserves, such as Jharkhand, Odisha, Chhattisgarh, and central India. During this time, private firms like the Tata Iron and Steel Company and the Indian Iron and Steel Company held mining leases and controlled production under British authority.

After gaining independence, India took a major step by nationalizing the coal industry in 1973. This led to the formation of Coal India Limited (CIL), which now manages most of the country’s coal output. To describe the production of coal in India today, one must acknowledge CIL's role in scaling output and ensuring a stable coal supply for power and industrial needs . CIL has since become the world’s largest coal producer, playing a critical role in national energy security.

In the years that followed, the Indian government introduced reforms to boost private investment, improve operational efficiency and open coal blocks through transparent auctions . Alongside these efforts, India also started adopting cleaner mining technologies and strengthening safety standards to address environmental concerns .

To describe the production and distribution of coal in India, it is important to note that coal is mainly extracted in eastern and central states, then transported through railways and dedicated freight corridors to thermal power plants, steel factories and industries across the nation .

Today, India stands as the second-largest coal producer in the world. Despite its growing shift towards renewable energy, coal remains a cornerstone of India’s power generation and industrial infrastructure . The history of coal production in India traces a journey from colonial extraction to modern, sustainable practices underlining its continued relevance in the country's economic and energy landscape .

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Major Events in Coal Production in India

The major events relating to Coal Production in India are provided as under -

• Nationalization of Coal Industry: The nationalization of the coal industry in 1973 led to the establishment of Coal India Limited as the central agency responsible for coal production and exploration.
• Coal Sector Reforms : In recent years, the Indian government has undertaken various reforms to liberalize and boost coal production including the introduction of auction-based allocation of coal blocks and the commercial mining of coal .
• Environmental Concerns : The coal production sector in India faces challenges related to environmental impacts, including air pollution, deforestation and carbon emissions. Efforts are being made to adopt cleaner and more sustainable practices in coal production .

Importance or Significance of Coal Production in India

Coal production in India holds immense importance for several reasons :

• Energy Security : Coal is a significant source of energy for India, providing a reliable and abundant fuel source for electricity generation, industrial processes and domestic consumption .
• Electricity Generation : Coal-fired power plants contribute to the majority of India's electricity generation. Coal's availability ensures a stable power supply and supports economic growth .
• Industrial Development : Coal is a vital raw material for various industries, including steel, cement, aluminum and chemical production . Adequate coal production supports industrial growth and employment generation .
• Infrastructure Development : Coal mining activities contribute to regional development by providing employment opportunities, infrastructure development and economic growth in coal-producing regions .

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Points to Remember about Coal Production in India

Here are some key points to remember about coal production in India:

• India is the second-largest coal producer globally.
• Coal accounts for approximately 70% of India's total electricity generation.
• The major coal-producing states in India are Jharkhand, Odisha, Chhattisgarh, and West Bengal.
• Coal mining in India has a long history, with significant growth during the British colonial period.
• The coal industry was nationalized in 1973, leading to the formation of Coal India Limited (CIL).
• The coal sector in India has undergone reforms to promote transparency, competition, and sustainable practices.

Coal production in India holds immense significance for the country's energy security, industrial growth, and economic development. Understanding the history, major events, and significance of coal production is crucial for candidates preparing for government exams. Coal remains a major source of energy and a vital raw material for various industries in India. As the country moves towards cleaner and sustainable energy sources, the coal sector continues to undergo reforms to ensure responsible and efficient coal production.

As we look back on such topics related to GK, it is also important to understand that these topics are crucial for your competitive exams . To know more about other important examinations or information, download our Testbook app today and make your way easy to learn.