Coal India Ltd (CIL), which is responsible for over 80 per cent of the country’s coal output, produced 781.1 million tonnes (MT) of coal in FY25 — falling short of its annual target of 838 MT by nearly 7 per cent. This shortfall comes despite the company registering a marginal 1.2 per cent increase in payments to the government exchequer.
According to provisional government data, CIL contributed Rs 60,959.52 crore to the central and state exchequers in FY25, up from Rs 60,197.8 crore in FY24. However, the monthly payment in March saw a decline of 4.7 per cent year-on-year, dropping to Rs 5,832.69 crore from Rs 6,126.42 crore in the same month of the previous fiscal.
The coal-producing states earned revenue through royalty, the District Mineral Foundation (DMF), and the National Mineral Exploration Trust (NMET), among other avenues. The coal sector continues to play a key role in driving economic growth in fossil fuel-rich states, though the missed production target may prompt a reassessment of operational efficiency and output strategies.
