India Targets Massive FY30 Coal Output of 1.5 Billion Tonnes to Power Growth

India has set a coal production target of 1.5 billion tonnes for FY30 to reduce reliance on imports and meet domestic demand through indigenous sources. The country surpassed 1 billion tonnes of coal output in the last fiscal year, with a production target of 1 billion tonnes by FY27 for Coal India alone, which will increase to 1.13 billion tonnes by FY30. Initiatives to ramp up domestic production include a Single Window Clearance system, regulatory amendments, project expansions, and auctions of coal blocks for commercial mining.

In a strategic move to ensure energy security and meet the rising demand for power, the Government has announced an ambitious target to increase domestic coal production to 1.5 billion tonnes by FY2030. This step is aligned with the nation’s dual goals of energy independence and a smoother transition to cleaner fuels, by reducing coal imports while optimizing thermal power generation.

1. Current Production Landscape

As of FY2024, India produced over 980 million tonnes of coal, with Coal India Ltd (CIL) accounting for nearly 80% of the output. According to the country still imports about 15–20% of its thermal coal requirements, particularly for high-grade and coastal power plants. The new production target aims to eliminate thermal coal imports by 2030, unless required for specific quality needs.

2. Focus on Expanding Domestic Mining

The bulk of the production increase will come from expanded mining by Coal India, Signarama Collieries, and commercial mining blocks allocated to private players. The Ministry of Coal is streamlining environmental clearances, improving logistics, and encouraging the use of Mine Developer and Operator (MDO) models to speed up mine development. In a recent update from (Coal India’s) the company plans to increase its production share to 1 billion tonnes by FY2029, supported by mechanization, technology upgrades, and new project expansions.

3. Reducing Import Dependence

India currently imports over 200 million tonnes of coal annually, costing billions in foreign exchange. By increasing domestic production to 1.5 billion tonnes, the government hopes to significantly reduce import bills and increase supply chain resilience. Special attention is being given to coastal power plants to use domestic coal via rail-sea-rail logistics models and better blending technologies.

4. Sustainable Mining and Environment Goals

While coal remains vital for short-to-medium-term energy needs, the government is balancing production targets with environmental sustainability. The coal ministry has launched initiatives for eco-restoration, mine water reuse, biomass co-firing, and investment in underground mining to reduce surface disruption. These steps are consistent with India’s climate commitments under. As of FY2024, India’s total coal output stands at over 980 million tonnes, with Coal India Limited (CIL) contributing nearly 700 million tonnes. The remainder is supplied by Signarama Collieries Company Ltd (SCCL) and commercial/private miners. The official production data is regularly updated by (Ministry of Coal)

5. Integration with Renewable Energy Goals

The coal roadmap doesn’t run counter to India’s renewable energy ambitions. As per the Ministry of Power, coal is intended to serve as a reliable base load while the country scales up its solar, wind, and green hydrogen capacities. The phased coal strategy ensures grid stability and economic growth, especially in industrial and rural areas.

Conclusion

India’s decision to target 1.5 billion tonnes of coal output by FY30 represents a pragmatic approach to balancing growth with sustainability. By enhancing domestic production, improving logistics, and incorporating environmental safeguards, the country is aiming for energy security while gradually transitioning toward a cleaner energy mix.