Coal India’s production dropped by 8.5% in June due to heavy monsoon rains, especially impacting Jharkhand’s coalfields. Dispatches and coking coal output also fell sharply, affecting state revenues. The government, however, remains confident of meeting future coal demand.
India’s coal sector has seen a significant drop in production and dispatch during June 2025, primarily due to the early onset and intensity of monsoon rains. State-owned Coal India Limited (CIL), which contributes over 80% of India’s coal output, recorded an 8.5% fall in production compared to the same month last year, raising concerns about supply stability and state revenues. According to Coal India’s official filing, the company produced 57.8 million tonnes (MT) of coal in June 2025, down from 63.1 MT in June 2024. Dispatches also dropped by 7.4%, from 65.2 MT to 60.4 MT. In the first quarter (April to June) of the current financial year, CIL’s total production stood at 183.3 MT, compared to 189.3 MT in the same period last year.
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Heavy Rains Hit Jharkhand’s Coalfields
Local reports from coal-rich Jharkhand, especially areas like Dhanbad, Bokaro, and Rajmahal, show that continuous rains since June 17 have badly hit operations. Officials from Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), and Eastern Coalfields Limited (ECL) confirmed that daily coal output has dropped by nearly 50% in some areas.
BCCL, which typically produces 1 to 1.25 lakh tonnes per day, reported that production has fallen to around 50,000 tonnes per day. On certain days, output dipped to as low as 40,000 tonnes. Dispatches too have been affected, with an average of only 60,000 tonnes being dispatched per day in the last week of June.
Similarly, CCL reported a major production slowdown over the past 10 days, operating at roughly half of its normal capacity.
Impact on Coking Coal & State Revenue
The decline in coal production is not only affecting energy supply but also has financial implications for states. Jharkhand, which produces about 95% of India’s domestic coking coal, is particularly affected. BCCL alone contributes over 60% of India’s coking coal, which is vital for the steel industry.
In FY 2024-25, Jharkhand received Rs. 14,047.44 crore, or 23% of the total revenue paid by Coal India to various states the highest share among all Indian states. A continued drop in coal output could significantly impact Jharkhand’s earnings from mining royalties.
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Government’s Target and Assurance
Despite the dip, the Coal Ministry remains optimistic. Union Coal Minister G. Kishan Reddy has assured that there will be no coal shortage during the monsoon season. The ministry has said that it is committed to sustainable coal production, reducing import dependency, and ensuring supply for the power sector.
Coal India has set a production target of 875 MT and an offtake target of 900 MT for the financial year 2025-26. The government is also focusing on technological upgrades, better stock management, and improved evacuation infrastructure to minimize monsoon-related disruptions.
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