Coal India Limited's subsidiaries faced mixed results in FY26, with several key units reporting significant production declines. Bharat Coking Coal Ltd (BCCL) saw the sharpest drop, with output falling by 12.3 percent. Central Coalfields Ltd (CCL) experienced a 6.1 percent decrease, while Western Coalfields Ltd (WCL) and Mahanadi Coalfields Ltd (MCL) recorded reductions of 8.8 percent and 3 percent, respectively.
These downturns contrast with the growth reported by other subsidiaries. South Eastern Coalfields Ltd (SECL) increased its output by 5.3 percent, and Northern Coalfields Ltd (NCL) saw a 1.1 percent rise. However, these gains were not enough to offset the overall decline for the parent company. Coal India Limited's total production for FY26 dipped by 1.7 percent, reaching 768.1 million tonnes compared to 781.1 million tonnes in the prior fiscal year.
India's increasing reliance on coal comes as global energy supplies face disruptions, particularly due to events in West Asia. These geopolitical tensions have tightened the availability of gas and LNG worldwide, leading to higher imported coal prices. This scenario amplifies the importance of domestic coal production for India's energy security.
Former power secretary Anil Razdan voiced concerns about the implications of focusing solely on output targets without adequate storage facilities. "Over production of coal just to meet production targets without proper storage could lead to spoilage of coal," Razdan told PTI. He highlighted that this could worsen existing supply chain challenges.
Despite the production dips, questions linger about whether Coal India Limited, which supplies over 80 percent of the nation's domestic coal, met its contractual obligations to power plants and industrial users. Publicly available information suggests no widespread reports of shortages for contracted supplies. Razdan remains optimistic that both Coal India and the private sector can build sufficient stockpiles to meet peak summer electricity demand and potential monsoon-related disruptions.
However, former Coal India CMD Sutirtha Bhattacharya offered a different perspective, arguing that production targets should align with market needs. He suggested avoiding surplus stockholding during summer and instead focusing on quality assurance to build brand leadership. Bhattacharya noted that the market outlook for coal, alongside renewable energy, is expected to improve due to ongoing hydrocarbon deficits.