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[BUSINESS] · India · 4 sources

India's coal production and power generation jump in June 2026

Coal India Limited reported that its June 2026 e‑auction allocated 41% of the 266.23 lakh tonnes offered, with subsidiaries such as Northern and North Eastern Coalfields achieving 100% allocation. Average auction prices rose about 42% above notified levels, indicating strong demand.

India's coal‑fired power generation surged 14% year‑on‑year to 120.20 billion kWh in June, the highest since November 2023, while total electricity output rose 10.4% to 178.31 billion kWh. The increase was driven by a severe heatwave, low monsoon rainfall and higher cooling demand, despite a record 19% share of renewables in the power mix. Hydropower fell 24.4% and natural‑gas generation dropped 30.1%.

Coal production from Indian captive and commercial mines reached 17.88 million tonnes in June, up 14.9% from a year earlier, with dispatch at 18.55 million tonnes. The first quarter of FY 2027 saw a 5.35% rise in production. New mines – Urtan, Dhirauli and Bikram – began operations, adding 7.51 million tonnes per annum capacity, with Urtan’s coking coal expected to reduce steel‑industry imports.