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Captive coal mines on track to exceed 190 MT output in FY27

India's captive coal mining sector is expected to surpass 190 million tonnes of production during the current financial year, driven by steady growth in output from privately-operated mines.

LSN India · 11 September 2026

Captive coal mines on track to exceed 190 MT output in FY27

Captive coal mines in India have demonstrated robust growth momentum, with production reaching 68.98 million tonnes in the first five months of the current financial year ending September 10, according to government projections. The output reflects a year-on-year increase of approximately 5 per cent, indicating sustained expansion in the privately-operated mining segment that supplements India's overall coal production capacity.

Government officials have indicated confidence that full-year captive mine output will cross the 190 million tonne threshold by March 2027, representing a significant contribution to the nation's energy security objectives. Captive coal mines, typically operated by end-use industries and allocated through auction processes, have emerged as a critical component of India's coal supply chain, complementing production from state-owned Coal India Limited.

The projected growth in captive mine output aligns with India's broader strategy to enhance domestic coal production and reduce import dependency. As the country continues to balance rising energy demands with infrastructure expansion, the performance of captive mines remains instrumental in meeting industrial and power generation requirements across multiple sectors.