India’s coal output rises 7.5pc in July, dispatch jumps 17pc signalling strong demand momentum

THEBUSINESSBYTES BUREAU

NEW DELHI, AUGUST 2, 2026

India’s coal sector maintained its growth trajectory in July 2026, with both production and dispatch posting healthy year-on-year gains, reflecting robust demand and the government's continued focus on ensuring adequate fuel availability for key consuming sectors.

According to provisional data released by the Ministry of Coal, the country’s coal production increased 7.51 per cent year-on-year to 69.75 million tonnes (MT) in July 2026 from 64.88 MT in the corresponding month last year. Coal dispatch witnessed an even sharper rise, climbing 17.34 per cent to 86.33 MT during the month compared with 73.57 MT in July 2025, indicating improved supply chain efficiency and sustained demand from power and industrial consumers.

The ministry said the strong performance in both production and dispatch underscores its sustained efforts to ensure consistent coal supply and maintain operational stability across the sector, amid rising energy requirements.

On a cumulative basis, coal production during the first four months of FY2026-27 reached 302.24 MT (provisional), while cumulative coal dispatch stood at 354.70 MT (provisional). Dispatch during the period registered a growth of 5.87 per cent over the corresponding period of the previous financial year, highlighting continued momentum in the sector.

State-run Coal India Ltd (CIL), the country’s largest coal producer, remained the key contributor to the overall output. The company produced 50.35 MT of coal in July 2026, registering an 8.42 per cent year-on-year increase over July 2025.

CIL also reported a strong dispatch performance, supplying 63.67 MT of coal during the month, up 17.43 per cent from the year-ago period. Its cumulative coal dispatch during the April-July period of FY2026-27 also rose 6.81 per cent compared with the corresponding period last year, reinforcing its central role in meeting the country’s energy demand.

The Ministry of Coal reiterated its commitment to achieving sustainable growth in the sector by enhancing domestic coal availability and reducing dependence on imports. The continued improvement in production and dispatch, it said, reflects the sector’s critical contribution to supporting India’s economic growth and ensuring energy security.