Coal India Ltd (CIL), the nation's largest coal producer, is setting its sights on ambitious production goals despite recent setbacks, according to Chairman-cum-Managing Director Sanoj Kumar Jha. The company, which accounts for over 80% of India's domestic coal output, is targeting a production of 875 million tonnes (MT) by fiscal year 2026.

Production Challenges and Targets

Jha, who assumed his role on November 1, acknowledged recent production shortfalls:

These declines were attributed to monsoon rains, which significantly impacted mining operations.

Future Outlook

Despite these challenges, CIL remains committed to its long-term goals:

• FY26 Production Target: 875 MT
• FY26 Dispatch Target: 900 MT

Current Market Dynamics

Jha noted some current market trends:

• Sluggish coal demand, particularly from the power sector
• Plans to maintain higher stock levels compared to the previous year
• Commitment to meeting industry requirements despite reduced demand

Regulatory Developments

In a move that could potentially reshape coal trading in India, regulations for a proposed coal exchange are expected within the next six months. This development may introduce new dynamics to the coal market and potentially impact CIL's operations and strategy.

Conclusion

While Coal India Ltd faces short-term challenges, including weather-related production declines and fluctuating demand, the company's leadership remains focused on long-term growth and meeting industry needs. The coming months will be crucial as CIL works to overcome recent setbacks and align its production with ambitious future targets.

Coal India Limited (CIL) and Damodar Valley Corporation (DVC) have taken a significant step towards enhancing India's power generation capacity. The two state-owned entities signed a Joint Venture Agreement (JVA) on November 7, 2025, to undertake a brownfield expansion of a 1,600 MW thermal power project at DVC's existing Chandrapura Thermal Power Station (TPS) in Jharkhand.

Key Details of the Joint Venture

Strategic Implications

This partnership represents a significant move in India's energy sector, aimed at strengthening the country's baseload generation capacity. The project leverages existing infrastructure at the Chandrapura site, which is expected to ensure efficient resource utilization and faster implementation.

Project Benefits

1. Competitive Power Generation: Being located in the coalfield area, the variable cost of power is expected to be competitive.
2. Infrastructure Advantage: As a brownfield expansion, the project benefits from existing infrastructure, including land availability.
3. Meeting Growing Demand: The project aligns with India's expanding energy needs, targeting to meet national and regional power demands significantly.

Corporate Governance and Structure

The Joint Venture Company will be incorporated as a private limited company with the following details:

Future Prospects

Beyond this specific project, the joint venture agreement opens avenues for Coal India and DVC to explore other thermal power and renewable energy projects jointly. This collaboration could play a crucial role in India's energy security and future power generation strategies.

The signing of this agreement marks a significant development in India's power sector, showcasing the government's commitment to enhancing the country's energy infrastructure through strategic partnerships between state-owned entities.