**Executive Summary**
This report details the performance of India's captive and commercial coal mining sector for June 2026 and the first quarter of FY 2026–27. The sector demonstrated significant growth, with coal production reaching 17.88 Million Tonnes (MT) in June, a 14.9% increase over the previous year. Key milestones include the commencement of production at three new mines—Urtan, Dhirauli, and Bikram—intended to bolster domestic supply security and reduce import reliance.
**Key Points / Main Content**
**June 2026 Performance Metrics**
* **Production Volume:** Coal production reached 17.88 MT, representing a 14.9% growth compared to the 15.56 MT recorded in June 2025.
* **Dispatch Volume:** Total coal dispatch for the month stood at 18.55 MT.
**Q1 FY 2026–27 Cumulative Trends (April–June)**
* **Production Growth:** Cumulative production increased by 5.35% compared to the same period in the previous financial year.
* **Dispatch Growth:** Coal dispatch recorded a year-on-year increase of 1.70%.
* **Long-term Growth:** The sector maintained a Compound Annual Growth Rate (CAGR) of approximately 10.7% between FY 2024–25 and FY 2026–27.
**New Mine Operationalization**
* **Commencement of Production:** Three mines—Urtan, Dhirauli, and Bikram—began operations during the first quarter.
* **Capacity:** These mines have a combined Peak Rated Capacity (PRC) of 7.51 Million Tonnes Per Annum (MTPA).
* **Strategic Importance:** The Urtan block provides coking coal, a vital raw material for domestic steel production.
**Operational Drivers**
* **Policy and Regulation:** Growth is attributed to Ministry of Coal policy initiatives and regulatory facilitation.
* **Efficiency:** Improved capacity utilization, production planning, and timely operational clearances have strengthened the sector's output.
**Impact Analysis**
**Steel Sector**
**Impact**
The commencement of production at the Urtan coking coal block increases the availability of essential domestic raw materials.
**Action Required**
The sector should transition toward utilizing domestic coking coal sources to reduce dependency on expensive imports.
**Energy and Industrial Sectors**
**Impact**
Higher coal production and dispatch enhance domestic coal availability and strengthen overall supply security for energy requirements.
**Action Required**
These sectors must align their procurement and production planning with the increased domestic output to support economic growth.
**Captive and Commercial Mine Operators**
**Impact**
Operators benefit from streamlined regulatory facilitation and improved capacity utilization frameworks provided by the Ministry.
**Action Required**
Operators should continue to focus on optimized mine operations and production planning to sustain the current growth momentum.
Key Entities Referenced
Ministry of Coal: The primary government body responsible for coal policy initiatives, regulatory facilitation, and monitoring production and dispatch performance.
Captive and Commercial Coal Mines: The specific coal mining sector segments focused on enhancing domestic coal availability and supporting the energy and industrial sectors.
Urtan Coal Mine: A newly operationalized coking coal block critical for the steel sector's raw material requirements and reducing import reliance.
Dhirauli Coal Mine: One of the three coal mines that commenced production in Q1 FY 2026–27, contributing to the sector's Peak Rated Capacity.
Bikram Coal Mine: A coal mine that recently began operations, helping to drive the growth in domestic coal production and supply security.
Ministry of Coal
Monthly Production and Dispatch from Captive
and Commercial Mines in June 2026
Posted On: 02 JUL 2026 2:59PM by PIB Delhi
India’s captive and commercial coal mining sector continued its growth momentum in June 2026,
recording higher production and dispatch during the month.
Coal production from captive and commercial mines stood at 17.88 Million Tonnes (MT) in June 2026 of
FY 2026–27, while coal dispatch reached 18.55 MT. Production increased by 14.9% over June 2025,
when output stood at 15.56 MT.
During the first quarter of FY 2026–27, from April to June 2026, cumulative coal production increased by
5.35% compared with the corresponding period of the previous financial year. Coal dispatch during the
quarter also recorded a year-on-year increase of 1.70%.
The performance reflects continued improvements in mine operations, capacity utilization and production
planning. The accompanying graph depicts the trend in coal production and dispatch in Million Tonnes.
The accompanying graph illustrates the trend in production and dispatch (Million tonnes)
.
Key Achievements in Q1 FY 2026–27
The captive and commercial coal mining sector continued to demonstrate sustained growth during Q1 FY
2026–27. Coal production from captive and commercial mines during the first quarter has grown at a
CAGR of approximately 10.7% between FY 2024–25 and FY 2026–27, reflecting a steady upward trend
in domestic coal production.
During the quarter, three coal mines Urtan, Dhirauli and Bikram commenced coal production. Together,
these mines have a combined Peak Rated Capacity (PRC) of 7.51 MTPA.The operationalization of these mines is expected to enhance domestic coal availability, strengthen supply
security and support the growing requirements of the country’s energy and industrial sectors, thereby
contributing to economic growth.
The commencement of production from Urtan, a coking coal block, is particularly important as coking
coal is a key raw material for steel production. The mine is expected to strengthen the availability of
domestic coking coal for the steel sector and support efforts to reduce reliance on imports.
The Ministry of Coal attributes the sector’s progress to policy initiatives, regulatory facilitation and
sustained engagement with stakeholders. These efforts have enabled timely operational clearances,
improved capacity utilisation and strengthened coal production and dispatch from captive and commercial
coal mines.
****
Shuhaib T
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