Kolkata : Coal India Limited (CIL) has reported a strong increase in coal supplies to India’s power sector, reinforcing its commitment to meeting the country’s growing electricity demand during the peak summer season. According to a regulatory filing submitted to the stock exchanges, the state-owned Maharatna PSU supplied 51.44 million tonnes (MT) of coal to power plants in June 2026, registering a 5.9% year-on-year (YoY) increase from 48.57 MT supplied in June 2025.
The improved supply comes at a crucial time as electricity consumption remains elevated due to high temperatures across the country.
Strong Q1FY27 Performance
For the first quarter of FY2026-27 (April–June 2026), Coal India supplied 154.75 MT of coal to the power sector, reflecting a 1.8% YoY increase. The company also reported healthy growth in its overall coal dispatches across all consumer categories.
During June 2026, total coal off-take reached 65.8 MT, representing a 7.5% YoY increase. For the entire first quarter, total off-take stood at 197.7 MT, up 3.5% compared with the corresponding period of the previous financial year.
Non-Power Sectors Witness Robust Growth
Coal India also significantly increased supplies to non-regulated sectors, including the steel, cement, aluminum, and other industrial segments.
Coal dispatches to these industries rose 14.8% YoY to 14.50 MT in June 2026. During the first quarter, supplies to non-regulated consumers increased by 10%, highlighting strong industrial demand and the company’s ability to serve multiple sectors simultaneously.
Strategic Reduction of Pithead Stock
One of the key highlights of the quarter was Coal India’s strategic decision to reduce its pithead coal inventory.
The company successfully cleared 28.3 MT of coal that had been stored at mine sites during the quarter. This inventory optimization strategy allows the company to:
- Reduce storage and inventory holding costs
- Prevent quality deterioration of stored coal
- Improve operational efficiency
- Accelerate coal movement to end-users
- Strengthen supply chain responsiveness
The move reflects Coal India’s focus on demand-driven dispatches rather than simply increasing stockpiles at mining locations.
First-Mile Connectivity Drives Faster Dispatches
Coal India also reported significant progress in its First-Mile Connectivity (FMC) infrastructure.
Coal movement through FMC systems surged 23% YoY during the first quarter to 66.76 MT. The modern loading system uses automated conveyor belts, rapid loading silos, and mechanized rail-loading facilities, replacing conventional truck transportation from mines.
The improved infrastructure offers several advantages:
- Faster evacuation of coal
- Reduced logistics costs
- Lower environmental impact
- Improved rail loading efficiency
- Quicker deliveries to power plants
FY27 Targets Remain on Track
Backed by its strong operational performance during the first quarter, Coal India Limited reaffirmed its production and supply targets for the current financial year.
The company aims to achieve:
- Coal Production Target: 815 MT
- Coal Supply Target: 850 MT
Coal India stated that its continued focus on efficient logistics, inventory optimization, and infrastructure modernization will support these ambitious targets while ensuring uninterrupted fuel availability for India’s power sector and industrial consumers.
Key Highlights
- Power sector coal supply increased 5.9% YoY to 51.44 MT in June 2026.
- Q1FY27 power sector supplies reached 154.75 MT, up 1.8% YoY.
- Total June coal off-take rose 7.5% YoY to 65.8 MT.
- Overall Q1FY27 off-take climbed to 197.7 MT, marking 3.5% growth.
- Non-regulated sector supplies increased 14.8% in June and 10% during the quarter.
- 28.3 MT of pithead coal stock was cleared to improve operational efficiency.
- First-Mile Connectivity (FMC) dispatches surged 23% YoY to 66.76 MT.
- Coal India remains on course to achieve its FY27 production target of 815 MT and coal supply target of 850 MT.
