India set a coal production target of 1.31 billion tonnes for the 2026–27 financial year, aiming to reduce import dependence amid increasing energy demand.

Of this, state-run Coal India Ltd. (CIL) is expected to produce a record 1 billion tonnes, while captive miners are projected to contribute 228 million tonnes. The remaining 79 million tonnes will come from Singareni Collieries Company Limited, which is jointly owned by the Telangana and Union governments.

In FY2025-26, India's coal production rose by 4.98% year on year, reaching a record 1.05 billion tonnes. Coal stocks at the country's thermal power plants were at 53.7 million tonnes as of January 19, 78% of the normative level, according to the Central Electricity Authority.

To boost domestic coal availability, the government has taken multiple steps, including auctioning new mines to increase production. The focus will be on maintaining consistent output, reducing supply disruptions, and supporting the country's growing energy needs.

Additionally, the government plans to finalize rules for proposed coal exchanges by March 2026. These exchanges will allow buyers and sellers to transact coal through a transparent and competitive pricing mechanism.

The Coal Controller Organization will oversee the coal exchanges, ensuring accurate production data and quality verification, and addressing disputes between consumers and mine owners.

The exchange will also provide an online platform for both commercial miners and public sector companies, including CIL, allowing buyers to select from multiple coal grades and locations.

India opened its coal sector to private players in 2020 with the introduction of commercial coal mining through block auctions. The Ministry of Coal has also set an asset monetization target of 350 billion rupees for FY2026-27, maintaining the same target as the current fiscal year.